UGI Reports Higher Earnings from Midstream & Marketing Segment

UGI Corp. reported higher net income from its Midstream & Marketing segment of $22.1 million for the three months ending September 30, 2010, versus $2.7 million a year ago.

For the fiscal year ending September 30, 2010, the Midstream & Marketing segment recorded net income of $68.2 million versus $38.1 million a year ago.

Total margin for the Midstream & Marketing segment for the entire fiscal year was $135.2 million, up from $126.2 million a year ago.

The increase in total margin was mainly due to higher total margin from energy marketing activities partially offset by lower total margin from electric generation.

Natural gas marketing total margin for the fiscal year increased $10.5 million as a result of higher average unit margins. Retail power marketing total margin increased $7.7 million, the result of higher volumes sold and higher average unit margins. Total margin from electric generation decreased $6.9 million primarily due to lower electricity prices.

UGI's retail energy marketing business continues to focus its growth activities on expanding its retail electric marketing presence, and expanding its gas marketing to small commercial and industrial customers. UGI Energy Services is now offering electric supply at 13 electric distribution companies within PJM, where the majority of its gas customers are located, and it reported "good success" in cross-selling electric supply to its gas customers.

UGI Energy Services has added about 10,000 new small business customer locations to its gas book in the past 24 months.

Revenues for the Midstream & Marketing segment for the fiscal year were lower at $1.146 billion, versus $1.225 billion a year ago, primarily due to lower gas marketing revenues associated with lower average natural gas prices.

For the quarter ending September 30, 2010, revenues for Midstream & Marketing were $196.4 million, versus $217.6 million a year ago.