AmeriGas Partners Reports Second Quarter Results, Updates Guidance

AmeriGas is the nation’s largest retail propane marketer, serving over two million customers in all 50 states from over 1,200 locations. UGI Corporation, through subsidiaries, is the sole General Partner and owns 26% of the Partnership. An affiliate of Energy Transfer Partners, L.P. owns 32% of the Partnership and the public owns the remaining 42%.

AmeriGas Partners, L.P. will hold a live Internet Audio Webcast of its conference call to discuss second quarter earnings and other current activities at 4:00 PM ET on Thursday, April 26. Interested parties may listen to the audio webcast both live and in replay on the Internet at http://investor.shareholder.com/ugi/apu/events.cfm or at the company website http://www.amerigas.com under “Investor Relations”. A telephonic replay will be available from 7:00 PM ET on April 26 through midnight Saturday, April 28. The replay may be accessed at 1-855-859-2056, passcode 36867488 and International access 1-404-537-3406, passcode 36867488.

Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com.

This press release contains 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 and many of which are beyond management’s control. You should read the Partnership’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, cost volatility and availability of propane, increased customer conservation measures, the capacity to transport propane to our market areas, the impact of pending and future legal proceedings, political, economic and regulatory conditions in the U.S. and abroad, and our ability to successfully integrate Heritage Propane and achieve anticipated synergies. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.

AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
		Three Months Ended								Six Months Ended								Twelve Months Ended
		March 31,								March 31,								March 31,
			2012				2011				2012				2011				2012				2011
Revenues:
Propane		$	1,082,764			$	859,595			$	1,720,047			$	1,513,407			$	2,567,079			$	2,212,806
Other			72,810				47,181				119,339				93,589				203,270				171,836
			1,155,574				906,776				1,839,386				1,606,996				2,770,349				2,384,642
Costs and expenses:
Cost of sales - propane			652,393				551,709				1,082,373				972,409				1,656,125				1,408,182
Cost of sales - other			17,618				13,085				31,446				27,690				62,882				57,682
Operating and administrative expenses			252,275				170,472				412,185				326,900				705,861				623,700
Depreciation			35,351				20,346				56,282				40,418				98,841				80,183
Amortization			9,441				2,858				12,698				5,453				18,978				9,869
Other (income) expense, net			(6,551	)			(6,320	)			(10,741	)			(12,075	)			(24,229	)			(21,178	)
			960,527				752,150				1,584,243				1,360,795				2,518,458				2,158,438
Operating income			195,047				154,626				255,143				246,201				251,891				226,204
Loss on extinguishment of debt			(13,379	)			(18,801	)			(13,379	)			(18,801	)			(32,695	)			(18,801	)
Interest expense			(45,045	)			(16,347	)			(61,578	)			(31,722	)			(93,374	)			(63,625	)
Income before income taxes			136,623				119,478				180,186				195,678				125,822				143,778
Income tax (expense) benefit			(764	)			71				(1,214	)			(348	)			(1,256	)			(1,897	)
Net income			135,859				119,549				178,972				195,330				124,566				141,881
Less: net income attributable to noncontrolling interests			(1,974	)			(1,547	)			(2,562	)			(2,460	)			(2,503	)			(2,240	)
Net income attributable to AmeriGas Partners, L.P.		$	133,885			$	118,002			$	176,410			$	192,870			$	122,063			$	139,641
General partner's interest in net income attributable to AmeriGas Partners, L.P.		$	4,282			$	2,133			$	6,273			$	3,834			$	8,862			$	5,205
Limited partners' interest in net income attributable to AmeriGas Partners, L.P.		$	129,603			$	115,869			$	170,137			$	189,036			$	113,201			$	134,436
Income per limited partner unit (a)
Basic		$	1.26			$	1.45			$	2.13			$	2.51			$	1.67			$	2.34
Diluted		$	1.26			$	1.45			$	2.13			$	2.51			$	1.67			$	2.34
Average limited partner units outstanding:
Basic			83,153				57,128				70,073				57,109				63,602				57,099
Diluted			83,195				57,175				70,124				57,159				63,653				57,147
SUPPLEMENTAL INFORMATION:
Retail gallons sold (millions)			389.4				316.3				610.3				572.7				911.8				869.5
EBITDA (b)		$	224,486			$	157,482			$	308,182			$	270,811			$	334,512			$	295,215
Expenditures for property, plant and equipment:
Maintenance capital expenditures		$	12,857			$	9,357			$	24,647			$	19,719			$	43,100			$	39,524
Growth capital expenditures		$	10,640			$	9,951			$	20,453			$	20,895			$	38,614			$	38,876

(a)		Income per limited partner unit is computed in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share as it relates to master limited partnerships. Refer to Note 2 to the consolidated financial statements included in the AmeriGas Partners, L.P. Annual Report on Form 10-K for the fiscal year ended September 30, 2011.
(b)		Earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") should not be considered as an alternative to net income attributable to AmeriGas Partners, L.P. (as an indicator of operating performance) and is not a measure of performance or financial condition under accounting principles generally accepted in the United States ("GAAP"). Management believes EBITDA is a meaningful non-GAAP financial measure used by investors to (1) compare the Partnership's operating performance with that of other companies within the propane industry and (2) assess the Partnership's ability to meet loan covenants. The Partnership's definition of EBITDA may be different from those used by other companies.
		Management uses EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes or historical cost basis. In view of the omission of interest, income taxes, depreciation and amortization from EBITDA, management also assesses the profitability of the business by comparing net income attributable to AmeriGas Partners, L.P. for the relevant years.
		Management also uses EBITDA to assess the Partnership's profitability because its parent, UGI Corporation, uses the Partnership's EBITDA to assess the profitability of the Partnership which is one of UGI Corporation's industry segments. UGI Corporation discloses the Partnership's EBITDA in its disclosure about industry segments as the profitability measure for its domestic propane segment. EBITDA in the three months ended March 31, 2012 includes a pre-tax loss of $13,379 from extinguishment of debt and acquisition and transition expense of $8,138 associated with the Heritage Propane acquisition. EBITDA in the six months ended March 31, 2012 includes a pre-tax loss of $13,379 from extinguishment of debt and acquisition and transition expense of $11,855 associated with the Heritage Propane acquisition. EBITDA for the twelve months ended March 31, 2012 includes a pre-tax loss of $32,695 from extinguishment of debt and acquisition and transition expense of $11,855 associated with the Heritage Propane acquisition. EBITDA in the three, six and twelve months ended March 31, 2011 includes pre-tax losses of $18,801 from extinguishments of debt. EBITDA for the twelve months ended March 31, 2011 also includes a $7,000 pre-tax loss associated with increased litigation reserves.
		The following table includes reconciliations of net income attributable to AmeriGas Partners, L.P. to EBITDA and Adjusted EBITDA (1) for all periods presented:

		Three Months Ended							Six Months Ended						Twelve Months Ended
		March 31,							March 31,						March 31,
		2012			2011				2012			2011			2012			2011
Net income attributable to AmeriGas Partners, L.P.		$	133,885		$	118,002			$	176,410		$	192,870		$	122,063		$	139,641
Income tax expense (benefit)			764			(71	)			1,214			348			1,256			1,897
Interest expense			45,045			16,347				61,578			31,722			93,374			63,625
Depreciation			35,351			20,346				56,282			40,418			98,841			80,183
Amortization			9,441			2,858				12,698			5,453			18,978			9,869
EBITDA		$	224,486		$	157,482			$	308,182		$	270,811		$	334,512		$	295,215
Heritage Propane acquisition & transition expense			8,138			-				11,855			-			11,855			-
Loss on extinguishments of debt			13,379			18,801				13,379			18,801			32,695			18,801
Litigation reserve			-			-				-			-			-			7,000
Adjusted EBITDA (1)		$	246,003		$	176,283			$	333,416		$	289,612		$	379,062		$	321,016

The following table includes a reconciliation of forecasted net income attributable to AmeriGas Partners, L.P. to forecasted EBITDA and Adjusted EBITDA for the fiscal years ending September 30, 2012 and 2013:

		Forecast			Forecast
		Fiscal			Fiscal
		Year			Year
		Ending			Ending
		September 30,			September 30,
		2012			2013
Net income attributable to AmeriGas Partners, L.P. (estimate)		$	5,000		$	258,000
Interest expense (estimate)			145,000			165,000
Income tax expense (estimate)			3,000			4,000
Depreciation (estimate)			134,000			148,000
Amortization (estimate)			34,000			40,000
EBITDA		$	321,000		$	615,000
Transition expenses (estimate)			50,000			20,000
Loss on extinguishment of debt (estimate)			14,000			-
Adjusted EBITDA (1)		$	385,000		$	635,000

(1) Adjusted EBITDA is a non-GAAP financial measure. Management believes the presentation of this measure provides useful information to investors to more effectively evaluate the year-over-year results of operations of the Partnership. Management uses Adjusted EBITDA to exclude from AmeriGas Partners' EBITDA gains and losses that competitors do not necessarily have to provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships. This measure is not comparable to measures used by other entities and should only be considered in conjunction with net income attributable to AmeriGas Partners, L.P. for the relevant periods.

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