UGI Corporation (UGI or 'the company') is a domestic and international retail distributor of propane and butane, which are liquefied petroleum gases (LPG); and a provider of natural gas and electric service through regulated local distribution utilities. Additionally, the company is also a regional marketer of energy commodities, and a regional provider of heating, ventilation, air conditioning, refrigeration, and electrical contracting services. The company primarily operates in the US.
UGI operates through six business segments: AmeriGas propane, UGI International - France, energy services, gas utility, UGI International - Flaga & other and electric generation. The company also reports a corporate and other segment, which includes the former electric utility reportable segment.
The AmeriGas propane segment consists of the propane distribution business of AmeriGas Partners, a retail propane distributor, in which UGI has 26% ownership interest (the remaining interest is publicly held). During FY2016, the partnership served approximately 1.9 million customers in all 50 states in the US from approximately 1,900 propane distribution locations. In addition to distributing propane, the partnership sells, installs, and services propane appliances, including heating systems.
The partnership sells propane primarily to residential, commercial/industrial, motor fuel, agricultural, and wholesale customers. The partnership distributed over 1.1 billion gallons of propane in FY2016. The partnership markets propane principally under the AmeriGas and America's Propane Company trade names and related service marks. Additionally, the partnership operates AmeriGas Cylinder Exchange (ACE) program which enables consumers to purchase or exchange propane cylinders at various retail locations such as home centers, gas stations, mass merchandisers and grocery and convenience stores. As of FY2016, propane exchange cylinders were available at nearly 54,000 retail locations throughout the US.
The UGI International - France segment consists of the LPG distribution business in France and the Benelux countries consisting of Belgium, the Netherlands, and Luxembourg. It operates a natural gas marketing business in France and Belgium and sold approximately 17 million dekatherms of natural gas during FY2016.
Moreover, during FY2016, UGI France sold approximately 451 million gallons of LPG in France and approximately 46 million gallons of LPG in the Benelux countries. UGI France's customers consist of residential, commercial, agricultural, and motor fuel customer accounts that use LPG for space heating, cooking, water heating, process heat, and transportation. It also sells LPG in cylinders to approximately 20,000 retail outlets, such as supermarkets, individually owned stores, and gas stations. During FY2016, UGI France had approximately 404,000 bulk customers, around 28,000 natural gas customers, nearly 15 million cylinders in circulation and 54 secondary storage facilities, 42 of which are wholly-owned.
The energy services segment consists of energy-related businesses conducted by the wholly-owned subsidiary, UGI Energy Services (Energy Services). These businesses include energy marketing in the Mid-Atlantic region of the US; operating and owning a natural gas liquefaction, storage and vaporization facility and propane-air mixing assets; managing natural gas pipeline and storage contracts; and developing, owning and operating pipelines, gathering infrastructure and gas storage facilities primarily in the Marcellus Shale region of Pennsylvania. The company sells natural gas, liquid fuels, and electricity to approximately 16,000 commercial and industrial customers at approximately 40,000 locations. It serves customers in all or portions of Pennsylvania, New Jersey, Delaware, New York, Ohio, Maryland, Massachusetts, Virginia, North Carolina, South Carolina and the District of Columbia. The segment also distributes natural gas through the use of the transportation systems of 37 local utility systems. It supplies power to customers through the use of the transmission systems of 20 utility systems.
The segment operates natural gas liquefaction, storage and vaporization facility in Temple, Pennsylvania, and propane storage and propane-air mixing stations in Bethlehem, Reading, Hunlock Creek, and White Deer, Pennsylvania. It also operates propane storage, rail transshipment terminals, and propane-air mixing stations in Steelton and Williamsport, Pennsylvania. Moreover, a wholly-owned subsidiary of the segment, owns and operates underground natural gas storage and related high pressure pipeline facilities which have Federal Energy Regulatory Commission (FERC) approval to sell storage services at market-based rates. The storage facilities are located in the Marcellus Shale region of Pennsylvania and have a total storage capacity of 15 million dekatherms and a maximum daily withdrawal quantity of 224,000 dekatherms.
The gas utility segment consists of the regulated natural gas distribution businesses of the company's subsidiary, UGI Utilities and its subsidiaries, UGI Penn Natural Gas (PNG) and UGI Central Penn Gas (CPG). The segment serves nearly 626,000 customers in portions of 44 eastern and central Pennsylvania counties through its distribution system of approximately 12,000 miles of gas mains and more than 500 customers in portions of one Maryland County. The total volume of gas sold to or transported for customers within gas utility's distribution system for FY2016 was approximately 212.4 billion cubic feet (bcf).
Moreover, the company's gas utility segment purchased approximately 64.7 bcf of natural gas for sale to retail core-market customers and off-system sales customers.
The UGI international - Flaga and AvantiGas segment consists of the LPG distribution businesses conducted through its wholly-owned subsidiaries, Flaga and AvantiGas.
Flaga operates in Austria, the Czech Republic, Denmark, Finland, Hungary, Norway, Poland, Romania, Slovakia, Sweden and Switzerland. It serves customers that use LPG for residential, commercial, industrial, agricultural, resale, and automobile fuel (auto gas) purposes. During FY2016, Flaga sold approximately 272 million gallons of LPG, of which approximately 14 million gallons were to wholesale customers. The company also sell LPG in cylinders and in small, medium, and large bulk tanks to 64,000 customers and nearly 4.4 million cylinders in circulation with a total of 19 sales office throughout the countries it serves.
Also, Flaga operates 16 main storage facilities, including one in Denmark and one in Finland that are located at deep sea harbor facilities, two LPG import terminals in Poland and 22 secondary storage facilities. Flaga manages a widespread logistics and transportation network including approximately 205 leased railcars, and also maintains various trans-loading and filling agreements with third parties. LPG stored in primary storage facilities is transported to smaller storage facilities by rail or truck.
AvantiGas is an LPG distributor in the UK. During FY2016, AvantiGas sold over 163 million gallons of LPG. It serves customers that use LPG for wholesale, aerosol, agricultural, residential, commercial, industrial, and auto gas purposes. Also, AvantiGas served over 16,450 customers. AvantiGas' customers primarily use LPG for heating, motor fuel (including forklifts), leisure activities, industrial processes, and aerosol propellant. Moreover, AvantiGas operates 10 main storage facilities in England, Scotland and Wales and manages a logistics and transportation network, consisting of approximately 50 trucks and also maintains various transportation agreements with third parties.
In the electric generation segment, the company consists of electric generation facilities conducted by energy services segment's wholly-owned subsidiary, UGI Development Company (UGID). It has an approximate 5.97% (102 megawatts (MW))) ownership interest in the Conemaugh generating station, a 1,711 MW, coal-fired generation station located near Johnstown, Pennsylvania. The segment also owns the Hunlock Station located near Wilkes-Barre, Pennsylvania, a 130 MW natural gas-fueled generating station. It owns and operates a landfill gas-fueled electricity generation plant in Hegins, Pennsylvania with gross generating capacity of 11 MW. It also owns and operates 13.5 MW of solar-powered generation capacity in Pennsylvania, Maryland and New Jersey.
The corporate & other segment comprise of electric utility, enterprises with heating, ventilation, air-conditioning, refrigeration and electrical contracting businesses (HVAC), and others.
The electric utility division consists of the regulated electric distribution business of UGI Utilities. It serves approximately 62,000 customers in northeastern Pennsylvania through a system consisting of approximately 2,200 miles of transmission and distribution lines and 13 transmission substations.
Scope of the Report
-- About the Company - Historical Details, Current Ownership Structure and basic overview of UGI Corporation in terms of revenue, net income, and operating income.
-- Financials - Details about UGI Corporation listing status, annual financial reports (for the past 5 years), key financial highlights and region wise and category wise breakdown of their net revenue.
-- Products / Services - Listing of the company’s entire portfolio along with description of individual products / services providing a clear picture of their target audience.
-- Company SWOT Analysis - Outlines UGI Corporation’s strengths, weaknesses, and opportunities and threats facing the company.
-- Recent Developments - Showcases UGI Corporation’s recent developments including mergers, acquisitions, partnerships, collaborations, new product launches, investment and divestment plans.
-- Strategic Evaluation - Provides an overview of UGI Corporation’s corporate goals and strategic initiatives and evaluates their outcomes along with outlining any persisting legal issues and outlook of our in-house analyst panel on the particular company.
-- Technology Landscape - Details how the company allocates its IT budget across the core areas of its business, CIO/CTO Profile, Key IT Initiatives and Deals undertaken buy the company at present along with outlook.
Key Questions Answered
-- What domain does UGI Corporation operate and what are key points about it?
-- What is the product / service portfolio of UGI Corporation?
-- How has UGI Corporation performed financially from the 2013?
-- How does UGI Corporation rank among its peers in terms of revenue and market share?
-- What are UGI Corporation strengths and weaknesses and what opportunities and threats does it face?
-- What are UGI Corporation’s main growth strategies and how successful has the company been at implementing them?
-- What is the in-house technical capability of UGI Corporation? Where does it procure / outsource it?
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1. About the Company
1.1 History and Basic Facts
1.2 Ownership Structure and Key Executives
1.3 Head Office
1.4 Other Locations & Subsidiaries
1.5 List of Competitors
1.6 Employee Count & Distribution
2.1 Company Type (Listed / Unlisted)
2.2 Annual Statements
2.3 Key Financial Highlights
2.4 Region-wise Breakdown
3. Product / Services
4. SWOT Analysis
4.1 SWOT Overview
5. Recent Developments
5.1 Mergers & Acquisitions
5.2 Partnerships, Collaborations & Joint Ventures
5.3 New Product Launches
5.4 Business Expansion / Divestment
6. Strategic Evaluation
6.1 Corporate Strategy
6.2 Legal Issues
6.3 Analyst Outlook
7. Technology Landscape
-- 7.1.1 Industry Snapshot
-- 7.1.2 IT Spend
-- 7.1.3 Key Information Technology Trends
-- 7.2.1 IT Overview
-- 7.2.2 Key IT Technologies
-- 7.2.3 Recent IT Initiatives
-- 7.2.4 IT Outsourcing Engagements
-- 7.2.5 Key IT Management
-- 7.2.6 CIO/CTO Profile
-- About Us
-- Contact Us