Ugi Corp Stock Price, News & Analysis

UGI Utilities has initiated the acceptance of Renewable Natural Gas (RNG) from Archaea Energy, marking a significant expansion in its pipeline distribution. With an interconnect agreement signed in Fiscal 2021, the new system can accommodate up to 5.3 billion cubic feet of RNG annually, representing the largest RNG supply point in the U.S. The Pennsylvania Public Utility Commission approved a five-year pilot program, allowing UGI to incorporate RNG into its supply for customers starting in 2022. This initiative aims to lower carbon emissions and support sustainable energy practices.

UGI Corporation announced that its subsidiary, UGI Energy Services, has agreed to acquire Stonehenge Appalachia for approximately $190 million. This acquisition is expected to enhance UGI's presence in the Appalachian Basin and is projected to be immediately accretive to adjusted earnings. The Stonehenge system comprises over 47 miles of pipeline and has a gathering capacity of 130 million cubic feet per day. The deal, subject to regulatory approval, is anticipated to close by January 31, 2022.

UGI Corporation (NYSE: UGI) and SHV Energy have received approval from the European Commission to establish a joint venture aimed at advancing the production and utilization of renewable dimethyl ether (rDME). This important development allows them to operate the joint venture starting in early 2022. The partners plan to develop up to six production plants over five years, targeting a total capacity of 300,000 tons of rDME annually by 2027, with an estimated investment of up to $1 billion. This venture positions UGI to enhance its market presence in the renewable energy sector.

UGI Corporation, through its subsidiary UGI International, has priced an offering of €400,000,000 in senior unsecured notes with a 2.50% interest rate due in 2029. The offering is aimed at qualified institutional buyers, and the proceeds will be used to redeem existing notes due 2025, cover related expenses, and support corporate purposes. The closing of the offering is anticipated on or about December 7, 2021. The notes will not be registered under the Securities Act, meaning they cannot be offered or sold in the U.S. without registration or an exemption.

UGI Corporation announced that its subsidiary, UGI International, intends to offer €400 million in senior unsecured notes to qualified institutional buyers. The notes will be fully guaranteed by certain subsidiaries and will not be guaranteed by UGI itself. The proceeds will be used primarily to redeem existing senior unsecured notes due in 2025, alongside covering offering expenses and general corporate purposes. The offering is subject to market conditions and the notes will not be registered under the Securities Act, limiting their sale in the U.S.

UGI Corporation (NYSE: UGI) reported record financial results for the fiscal year ended September 30, 2021. GAAP net income reached $1.467 billion, while adjusted net income stood at $629 million. GAAP diluted EPS was $6.92, and adjusted diluted EPS was $2.96. The company completed the acquisition of Mountaineer Gas Company, enhancing its service area significantly. For fiscal 2022, UGI forecasts adjusted diluted EPS in the range of $3.05 to $3.25, indicating a commitment to 6-10% long-term EPS growth.

The Board of Directors of UGI Corporation (NYSE: UGI) has announced a quarterly dividend of $0.345 per share, payable on January 1, 2022 to shareholders of record by December 15, 2021. UGI has maintained a strong dividend history, with 137 consecutive years of payments and 34 years of increases. Additionally, a 0.125% per annum cash dividend on the convertible preferred stock (part of Equity Units, NYSE: UGIC) will be paid on December 1, 2021.

UGI Corporation (NYSE: UGI) will hold a virtual investor day on December 2, 2021, from 10:00 a.m. to 12:00 p.m. ET. CEO Roger Perreault and the executive team will present the company’s strategic plan, growth drivers, and financial objectives. Participants can pre-register here. A replay will be available on UGI’s corporate site post-event. The investor day will include webcast and dial-in options for attendees.

Cayuga RNG, a joint venture of UGI Energy Services and Global Common Energy, plans to develop its third renewable natural gas project at El-Vi Farms in upstate New York. This project follows the Spruce Haven and Allen Farms projects and represents nearly $50 million in investments within the renewable energy sector. Once operational in early 2023, the facility is anticipated to generate 55 million cubic feet of RNG annually for local pipelines. UGIES’ subsidiary, GHI Energy, will handle marketing for Cayuga RNG.