UGI Corporation

Good day and thank you for standing by. Welcome to the UGI Corporation Q3 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star 11 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your first speaker today, Tamika Morris. Please go ahead.

Good morning, everyone. Thank you for joining our fiscal 2025 third quarter earnings call. With me today are Bob Flexen, President and CEO, and Sean O'Brien, CFO. On today's call, we will review our third quarter and fiscal year-to-date financial results, along with other key business highlights, before concluding with a question and answer session. 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, our quarterly reports, and our 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. And with that, I'll hand the call over to Bob.

Thanks, Tamika, and good morning. UGI has continued to deliver outstanding year-to-date results, reflecting the strength of our asset portfolio and our team's commitment to safely and reliably deliver positive energy solutions to our customers. Our increasing focus on safety, driving superior business performance, operational excellence, and creating greater financial flexibility is yielding results across each of our businesses. UGI's year-to-date adjusted diluted earnings per share of $3.55 is a record performance, up 33 cents over the prior year period. This performance reflects meaningful contribution from all segments, specifically from strategic investments in the growth-oriented natural gas infrastructure, operating efficiencies, particularly at UGI International, the customer-focused improvements now underway at Amerigas, and income tax credits. For the fiscal third quarter, we reported adjusted diluted earnings per share of negative one cent compared to positive six cents in the prior year period. As a reminder, our third and fourth quarters typically represent the seasonally weaker periods for our business, and this year's results reflect normal seasonal patterns. Given our strong year-to-date performance and the momentum across our businesses, we expect to be at the top end of our fiscal 2025 adjusted earnings per share guidance range of $3 to $3.15, which Sean will discuss later in the call. Slide five provides several key operational highlights for the third quarter. We deployed over $600 million of capital on a year-to-date basis with more than 80% directed to our highest risk-adjusted return businesses, the regulated utilities and UGI energy services. In addition, our utility segment continued to demonstrate strong fundamentals with sustained customer growth of approximately 9,000 residential heating and commercial customers added this fiscal year. We also made progress on the Pennsylvania gas utility rate case where there was a joint petition for approval of settlement filed on July 9th. This petition was for $69.5 million in revenue increase and is subject to review and approval by the administrative law judges and Pennsylvania Public Utility Commission. We anticipate that new rates will be finalized and implemented in the first quarter of fiscal 2026, which will support continued system investments to promote pipeline safety, reliability, and modernization. Separately, across both LPG businesses, we are successfully executing on our strategic portfolio optimization initiatives, entering into definitive agreements for asset sales which are expected to generate approximately $150 million in total proceeds during fiscal 2025. These targeted divestitures demonstrate our intention to operate in locations where we have a competitive advantage, focusing resources on our highest return opportunities while providing financial flexibility to support deleveraging objectives and fund growth investments. Turning to Amerigas, our customer-focused improvement initiatives are progressing as expected with ongoing execution of key actions, including procurement, routing and delivery, and call center reshoring as we prepare for the upcoming winter season. Furthermore, we are focusing on profitable customer segments. Therefore, we will be substantially exiting the wholesale business. While this may reduce the total LPG gallons sold, We expect no meaningful impact on our overall results as these volumes have little to no earnings contributions. For reference, fiscal 2024, the wholesale business represented approximately 11% of total LPG gallons sold, but was essentially a break-even business. And with that, I'll hand the call over to Sean to walk through the financial results in more detail.