UGI Corporation

Good day and thank you for standing by. Welcome to the UGI Corporation Q3 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 1 1 on your telephone Thank you for joining us today.

Good morning, everyone. Thank you for joining our fiscal 2026 third quarter earnings call. With me today are Bob Flexon, President and CEO, and Sean O'Brien, CFO. On today's call, we will review our third quarter and 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 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 now I'll turn the call over to Bob.

Thanks Tameka and good morning. Fiscal 2026 continues to be a year of disciplined execution against the strategic priorities we laid out at the start of the year. That focus is reflected in our financial performance, where solid operational results have absorbed the impact of portfolio actions, unfavorable weather, and slower growth in our domestic propane business. On a year-to-date basis, UGI delivered reportable segments EBIT of $1.2 billion, modestly ahead of the prior year period. This improvement resulted from growth at our utilities, which more than offset roughly $40 million in year-over-year decline from the previously announced LPG divestitures and the effects of warmer weather across our LPG service territories. Importantly, The fundamentals of each of our businesses remain intact, and the operational and financial progress we've made this year continues to strengthen the foundation of the company and support our long-term value creation strategy. Here today, we directed approximately 76% of total capital expenditures to our natural gas businesses, advancing our commitment to pipeline safety, reliability, and modernization while adding more than 8,500 new heating customers across our regulated utilities service territories. Of note, we completed our cast iron replacement commitment several months ahead of schedule, reflecting our continued focus on safety. On July 31st, the administrative law judges recommended approval of UGI Utilities' joint petition for settlement of our gas rate case without modification. Pending approval by the Pennsylvania Public Utility Commission, the settlement would permit a two-step rate increase of $65 million with approximately $40 million effective in October 2026 and approximately $25 million in October 2027 with a stay-out provision through January 2029. The terms of the settlement provide the company with the revenue needed to continue investing in its system, including maintaining its accelerated replacement of vintage materials while providing substantial benefits and protections to customers. As an example, the settlement includes a pilot that extends meaningful debt relief to a group of vulnerable customers who have historically fallen through the cracks Specifically, individuals earning between 150% and 300% of the federal poverty level. These are households that don't qualify under the existing program, and so the pilot will help customers experiencing trouble paying their bills by providing an avenue to maintain service and manage their bills while mitigating bad debt risk for UGIs. Combined with our increased contributions to Operation Share, where the company will ensure that a minimum of $1.5 million is available every year, we believe this settlement reflects a balanced outcome that strengthens the long-term relationship between the utility and the communities we serve. Beyond our regulated utilities, we also continue to position the midstream business for growth, with several well pad expansions planned on the UGI Appalachian system to increase throughput. These investments position us to capitalize on rising natural gas demand across the region, driven by continued economic development and the growing energy needs of data centers and power generation, ensuring we have the capacity in place to serve our customers and support long-term growth. Turning to slide five, at Amerigas, the transformation is taking hold, driving improved volume retention and favorable trends across several leading indicators. The team continues to strengthen the foundation of the business, materially improving trends in retail volume sold when compared to pre-fiscal 2025 levels, as well as the balance sheet and free cash flow generation capabilities. When compared to fiscal 2024, on a year-to-date basis, lost time injuries are down 50%, recordable injuries are down 44%, out-of-gas events are down 21%, and zero-fills are down 17%, while our average net promoter score is up 63%. This is meaningful and measurable progress. We remain focused on executing our active work streams across multiple focus areas. And with our call centers now back in the U.S., we are ramping up sales and marketing efforts, expanding our sales channels, and targeting new residential and B2B customers. These improvements all demonstrate that Amerigas is now well positioned for the anticipated return of distributions to UGI Corporation in fiscal 2027. Moving to UGI International, this year the team has done a tremendous job to offset the impact of non-core divestitures to deliver comparable year-to-date EBIT on a year-over-year basis, all while delivering a strong 23% EBIT margin, which speaks to the quality and resilience of this business. With a leading market position across our remaining geographies, over 90% tank ownership, and a strong track record of operational excellence, the business continues to experience long-standing customer relationships, strong customer retention rates, top-tier return on capital employed, and attractive free cash flow conversion rates. The embedded value and market potential of UGI International was recently underscored by an announced take private transaction in Europe involving one of our primary competitors. a company with a similar business and a comparable footprint across our key markets. The valuation implied by that announcement reinforces the significant value in our international platform and the opportunity that lies ahead. As we move forward, the team is focused on achieving organic growth through multiple initiatives, including heating oil to LPG conversion, where the market is roughly four times the size of the addressable LPG market. Additionally, we will look to further optimize our operations to improve margins while maintaining the reliability and service our customers expect. And with that, I'll hand the call over to Sean to walk through the financial results in more detail.