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UGI Reports Second Quarter Results, Updates Guidance For 2012

UGI Corporation (NYSE: UGI) today reported net income attributable to UGI of $133.4 million, or $1.18 per diluted share, for the second quarter of fiscal 2012 ended March 31, 2012, compared to $149.4 million, or $1.32 per diluted share, for the second quarter of fiscal 2011 ended March 31, 2011. Results for the current-year period were significantly impacted by record-setting warm weather in the United States and, to a much lesser extent, warm weather in Europe for two of the three months during the quarter. Results for the current-year quarter include the impact of the Heritage Propane acquisition completed by AmeriGas in mid-January and the Shell Acquisition completed by our International Propane business during the first quarter of fiscal 2012. Results for the current-year period include the after-tax impact of acquisition and transition costs associated with these transactions of approximately $2.2 million (a $0.02 reduction in earnings per diluted share). The current-year period also includes the impact of an after-tax loss of $2.2 million, or $0.02 per diluted share, related to an early extinguishment of debt at AmeriGas. Results for the prior-year period include the impact of an after-tax loss of $5.2 million, or $0.05 per diluted share, also related to an early extinguishment of debt at AmeriGas.

Lon R. Greenberg, chairman and chief executive officer of UGI, said, “Our domestic business units experienced historic warm weather during the quarter which resulted in a lack of heating-related demand for all energy products. European weather averaged near normal for the period, but the weather patterns during the quarter were particularly volatile, with a warm January followed by extreme cold in February and then a very warm March, when temperatures across Europe averaged nearly 20% warmer than normal. Despite the near-term earnings challenges brought about by the warm winter, we remain confident in the future prospects for our businesses and pleased with the progress that our management teams are making as they execute their core strategic initiatives. The most notable achievement during the quarter was the closing of the Heritage Propane acquisition at AmeriGas. Our International Propane business continued to make very good progress on the Shell Acquisition integration and our Gas Utility added a significant number of new customers through conversions from other fuels to natural gas. In March, our Midstream and Marketing business announced a joint agreement to develop the Commonwealth Pipeline, a 200-mile, 30-inch pipeline that will transport Marcellus Shale gas from northeastern Pennsylvania south to major markets in the Mid-Atlantic States. Finally, we just declared a 4% increase in UGI’s common dividend, adding to our enviable track record of paying a common dividend for 128 consecutive years and of increasing the dividend for the last 25 years. This long-term track record of consistent dividend growth, coupled with our ability to generate cash for reinvestment in UGI’s businesses, demonstrates the merits of UGI as a growth and income investment.”

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