Tameka Morris Director of Investor Relations
John Walsh President and Chief Executive Officer
Ted Jastrzebski Chief Financial Officer
Robert Beard Executive Vice President, Natural Gas
Roger Perreault Executive Vice President, Global LPG
Harry Pollan Bank of America
Shneur Gershuni UBS
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Ladies and gentlemen, thank you for standing by and welcome to the UGI Corporation First quarter 2021 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference to your speaker today, Tameka Morris, Director, Investor Relations. ahead. go Please

Tameka Morris

Beard, morning LPG. With Good CEO thank for Vice Corporation; you UGI; and Natural Thank Perreault, Roger today everyone are us. Executive Bob UGI of me Jastrzebski, of and Vice John joining President, Ted Gas; Global you. President CFO and Executive Walsh, of President

significantly, events as certain which management differ believes Before release we annual you of to remind results circumstances extensive statements, duty me affect from because different read and date our that for that that our Actual We XX-K results. be on uncertainties forward-looking difficult update reasonable of and begin, an or earnings let comments are today's of could only. or factors today our that reflect expectations. include predict. to report revise no risks Form forward-looking assume to may list are to Please statements

also measures our measures. using describe X of certain presentation. We comparable business available Slide financial are the measures to non-GAAP our on will these of Reconciliations GAAP

Now, call John. over the let to me turn

John Walsh

and very to we our Thanks reporting morning EPS adjusted our prior quarter point year. release that posted chance to welcome had as Good our review press hope call. first UGI for QX results you've strong Tameka. QX all a I a high surpassed achieved last

on by the impact presented demonstration ability continued to our response pandemic and challenges company. operational on a our from than quarter meet was and We've of of performance segments. and to commitments, a delivering strong our clear quarter financial while the quarter's an the This Our proactive addressing benefited the important is in normal of our customer this some the results. warmer weather for challenges, diversity strong focus geographic businesses, the

LDC our Beard it opportunities to under turn and our business, enhance we the eager as expand UGI the the the announced to additional financial gas investment gas a on then our we utilities performance. family social Mountaineer our of investments Perreault 'XX. Roger team We're later West of a on of in Company, comment the an Mountaineer acquire Gas customers development in Bob QX of agreement project and and will with our critical quarter, These environmental, Ted update to the our scale last today's providing as I'll about opportunity ESG by the our the in you to to review I'll distributor and acquisition activities rebalancing I'll and accelerate in their natural which efforts. of on week achievements largest a fiscal Virginia. comment our During governance across RNG business quarter, will businesses. XXXX. excited outlook for and utility in 'XX. developments comment over fiscal Idaho, on well provide of who strategic balance the QX call, follows our in On announced our conclude the GHI, And portfolio an in QX. Earlier welcome will renewable

$X.XX. EPS our while Our was QX GAAP QX was EPS $X.XX adjusted

'XX. marketing as work. unsettled that for XX% as adjusted territories from was that all close later. hedges, Ted solid a As a our warmer reflected the in businesses. adjusted we than LPG QX which was quarters weather Material items earnings fiscal above adjusted had This strong our well than will international UGI despite benefits of very year and EPS was I quarter other mark-to-market noted that our diversified particularly to performance EPS the a Europe. valuation of earlier, cover and fiscal was service strong $X.XX weather QX been have normal, Both quarter weather very prior our 'XX benefited warmer enjoyed of transformation just strength and had despite the except of

Our the contributor. was key margin of significant fee-based foundation

management margin increased quarter. from benefited also in We the capacity

teams and quarter all sustainability. remaining service Our business challenges across as a executing weather pandemic the our safety, strong while very deliver focused to on did job levels we address an and exceptional

I Before key over I'd with comment like in call the developments major turn achieved on progress in to the to several Ted, areas QX.

we Service. continuing our demand the XX% markets also of Our new These in to now program and is number phrase the to as offered the across base over available are months. see year. up US of were more continued demand Cynch extending in strong major continues factors QX consumer expect to were Cynch weather. AmeriGas for dining XX Total our colder of and in to Exchange happening created even We're round, expansion due next Delivery last levels A all see year Cynch Cylinder by XX our and period is the ACE to the at double the pandemic. tied customer high changing season grilling is outdoor same markets demand volumes Home versus habits

X,XXX more Our customer base new we grow to at UGI Utilities customers. than heating as continues added

in project our facility to the Utilities a remained to for replacement America, new in our expect among UPS strive due of replacement transport to the deliver to Cynch of significant We've to our natural infrastructure commenced as to natural by on emissions reductions. infrastructure betterment also a be to is regional UPS companies, disruptions long-term and will exceeded in in spring fiscal continue reduce be and Cynch large they replacement This focused just converting 'XX. We levels project despite compressed record establish largest and kind expected of some fleets gas. North pandemic fleet leader We work goals spend gas for help program. to major its construction emission on XXXX vehicles. achieve to schedules the with our a

dekatherms turn initiatives. a ongoing serves Ted in This another I'd point a But step Lehigh peaking Bethlehem in call later day at XX,XXX services at delivery LNG important had our unit December. of was the placed This this comment full business. Valley. peaking of like return LNG Our our and I'll for financial vaporization point our over the to the it capacity of that ESG Ted? on review. into on is network New to expansion the storage to service development critical

Ted Jastrzebski

Thanks John.

John $X.XX mentioned, As strong $X.XX fiscal diluted we're pleased quarter. to delivered the We the adjusted for EPS compared prior the quarter. with results of in

This million, share out fiscal to EBIT segments earnings million lays 'XX. for in prior compared table reportable GAAP $XXX the and to our year. adjusted Our per diluted compared 'XX was fiscal XXX

as $X.XX earnings of of number and the $X.XX our a hedging the mark-to-market gain see, can related a diluted foreign of exclude year instruments, Mountaineer versus December. loss announced $X.XX in currency $X.XX 'XX. you Last derivative to quarter loss to year. acquisition had changes We a As this a adjusted fiscal had compared this in year, commodity impact items instruments the of quarter loss of a such first that a this on we loss $X.XX

expenses same Lastly, flows cash amount we with activities, consistent out that transformation $X.XX cash growing initiatives business With the period year-to-date by LPG prior to strong of you see our operating liquidity, versus year. associated can regards year. remain the in with the adjusted is prior provided in the XX% with

QX which position within and with liquidity more had cash quarter higher units, of the comfortable year with our generation of a capital debt because first UGI our pleased billion, end working remain the half our billion We're of $X.X of across fiscal and seasonal than end particularly requirements covenants. quarter. available our we and also position financing consistent the is the liquidity business As typically capacity have 'XX. well We're in fiscal last of with all

of raised dividends XXX its Additionally, on X, UGI the dividend quarterly years and declared February $X.XX Directors share. dividend in XX last our each a per paid consecutive has Board years. common for of of

the fiscal we full well based our $X.XX, to earlier, of As adjusted our $X.XX shared $X.XX will the within regards in impact to note COVID-XX exist prior I that despite did prior this last headwinds, XXXX. we be diluted businesses was than like in of quarter I'd warmer EPS we year that With quarter, year year which weather we COVID-XX first quarter, the expect mentioned period delivered quarter. COVID-XX, that domestic of and not which for over first on experience the

we expense management disciplined our operational diversification continued of this benefits at biggest business, saw initiatives, the the and transformation quarter. international Stronger mentioned, of margins and our the LPG were John the quarter. geographic progress for As drivers on the results

had also a driven. pickup we quarter, primarily This was corporate that tax $X.XX at

results fiscal to provides half tax in of in last leveraged New rate the QX the in the year a prior it our was given year full which current its second prior versus year, will fiscal the be gain year, of year legislation our extent estimated reflected year. 'XX, tax QX introduction last not is in but

volume weather XX-year As also weighting prior a this have businesses. LPG a been history and transition year reminder to data The we a change. from this conform XX-year by and amounts to for are utilities to year, restated now history weather

and energy transformation euro by AmeriGas was currency drying to offset COVID-XX. and focus International UGI individual Like mentioned. the also was million by management. that Lower the loss margin structural partially This initiatives on from volume during propane offset to also exchange weather impact was prior to to of than prior cost compared lower approach year in $XXX costs out to XXX primarily than due commercial year, increase was effects I prior residual the period period, whether COVID-XX John margin margin heating in year higher the strong effects the margin movement on other quarter. in swings. volume largely continued decline. short-term benefited XXXX margins the conservation, Total marketing results from compared was of translation make prior UGI by from meant XX% large partially improvement Turning decline should in reported energy transformation business. volumes. dampen than and of EBIT partially total continues International the this fiscal the conservation roughly warmer of volumes, and year million favorable bulk X.X% the businesses, on The from delivered point colder achieving in a hedging the outstripping that stronger million, compared strong initiatives. of $XXX in costs the continued our progress of as due associated increase cylinder certificates recovery with volume EBIT the already the effective AmeriGas the was quarter also related our $XXX prior driven X% offset operating to our expenses million results The by our effects that that given period, to crop to was underlying on X.X% total supported year and

track on expect deliver We to the EURXX full are to by EURX in fiscal incremental and ongoing XXXX million fiscal realize of benefits in end XXXX. the the benefits full and million

Moving year marketing COVID-XX. the weather. relative corporate was our gas incorruptible due to despite and million year significantly cold below the prior in compared natural reductions delivery and Despite compensation quarter, largely of side to saw a EBIT compared year prior was reported normal employee to margin to reported a volume the EBIT management allocation warmer to flat Utilities provided due capacity prior increased expenses. the weather higher than which from weather, that large portfolio. $X our in warmer customers. service midstream prior quarter, higher house, the We warmer roughly prior benefits than significantly $XX XX% we of period volumes the the saw and comparison to favorable was year higher few asset year expenses OpEx UGI and firm million as due period and to periods for the short in value of

Bob expense capital turn the our continued over Lastly, and due on business. depreciation call expenditure increased for activity. update that, quarter natural system the I gas our to year an IP to With prior versus distribution will

Robert Beard

Ted. Thanks

Our natural margin was which that experienced warmer services. QX, gas normal approximately than at energy businesses affected weather both in XX% and utilities

continue no the in utilities to the or pandemic. measurable change margin While energy effects throughput, have services of see COVID experienced

energy QX strong. remain and effects as of core the businesses expectations the COVID, weather utilities fundamentals our and exceeded services of in both Excluding

done customers mentioned, community. the to to the employees invest energy distribution Virginia XXXX. with deal largest Virginia grow as our forward state. Pennsylvania Mountaineer utilities. The what Mountaineer much company on West petition we submitted as XXX,XXX announced the and was West half John of of have plan expect an XX and As look approximately excited Mountaineer this is PSC acquire Gas January of the We're we about to acquisition become of of in friendly family Gas, XX the in to of the in to recently opportunity the West XX companies, counties Mountaineer welcoming all importantly and part the Virginia. Company, serves in Mountaineer we We close second we the to and UGI

the seeing In gas of and to X,XXX at customers heating gas, businesses, energy we acquisition adding and $XXX the our activity business. we utilities remains execute our CapEx addition see FY with air continue plan in growth, a to in million growth services strong of both to in invest than to Utilities' significant on driver quarter, continued first midstream mountain approximately fully more natural expect 'XX. program

the prior plant an last settlement in threshold service the of mechanism. call, week use our triggers provision on resetting mentioned DSIC the agreement important I was for our that of As case

margin additional more 'XX. result, of $X a which DISC in significant realize result 'XX, contributions and approximately million in earlier, FY we As will and FY revenue will

plan focus involvement that positive this area our on investments in And clear improve we made two significant seen will with our have to have environment. developments We projects. our in

we significant emissions. as reductions to to in UPS thereby fleet natural convert be First, partnering its John achieving UPS gas, to natural Pennsylvania. their mentioned, in gas provide plans Middletown, will location with to

This addition, largest a system. a project large a agreement online, of Pennsylvania. fuel interconnect UGI for In landfill developer distribution project on Once an renewable project source in will natural to gas executed the the friendly the future. access we be gas renewable natural in gas will with the about opportunities this provide have more these solutions, our evaluating we expanding We examples renewable are announcements its to facilitate help of reach including near in These making projects we'll environmentally kind space. be many are two just the in detailed country. energy northeast

on outbreak, Finally, our COVID of as focus we the primary continue and remains our to the employees our safety navigate customers.

both critical service areas all continues, companies Roger. Our critical customer done metrics. turn remain of to our have solid. report work that, With And I'm key exceptional and to gas job, it over that an we these maintain teams natural safety and I'll ensuring pleased that

Roger Perreault

Thanks prior Bob. industrial lower our with Europe the commercial in year in strong LPG warmer quarter results pandemic challenges States. and the volumes, The COVID United very of despite AmeriGas, global whether LPG global the delivered businesses than first the driven by line both of it pleased our Even and portfolio of geographies, business quarter business offset first We're prior $XX value this ability result EBIT demonstrates our year excess the our delivered of in X.X%. with of fundamentals of applications, very and by million manage the to diversified warmer as or to customers, effects weather. at

customers and stemming increased of energy quarter, team in are that the grain our our despite the first uncertainties segment. partially our well from environment. of partially home continued in on to midst cylinder deliver as pandemic at UGI During certificate to experience heating to lower LPG drying teams to International. segments efforts experienced continuing of businesses demand remain ongoing results the exchange solid and transformation the our AmeriGas The the dedicated business, while team conservation We campaigns confident our execute the some higher strong increased were current cylinder cost and US including European serving positioned the also branded margin home from some The in cooking and the Cynch. delivery margin demand in service expansion global

Now, let's at move specifics more to AmeriGas.

that million annual by includes of million previously 'XX. announced of reminder, the a end program AmeriGas approximately $XXX $XXX we total investment a of benefits provide will fiscal transformation at As expect the

progressing are with processes of systems transformation part reengineering are key our We and the of efforts. that

goal of out the more quarter, of new with customers possible. first in tools, the and in the enhanced tool, engagement way management satisfying and a all fact, most center, use customer customer the logistics efficient centralized we routing our services broadly In rolled

was winter the operating first season nearly The new were operational quarter that first we fully model. our with

and experienced phones our service issues to certain and of with country have We the with the pockets calls of volume answer ability in distribution.

last days. XX these We addressing progress made major in issues, the are and have

items will and improvement in highlight significant resources beyond. the into as and new coming month dedicate the We operating issues I beneficial continue address few model. be to anticipate the would additional remainder year settle of to that the these a we to like over continued

and out cities noted, to the total our continue there of XX 'XX. to Cynch shortage a across exchange expect is cylinder has been by program reach US cities in QX. a the of rollout a increase we As volume fiscal experienced in year cylinders John Due cylinders and of cities USA, XX% to Overall, demand rolled in the purchases of over additional the XX to in unprecedented prior outright cylinders, market. end especially currently for

and issue demand during unprecedented this from we working a so time. best both can this this are standpoint serve supply market actively We that

Our National new solid our We're customer has improving about to achieved challenges despite center. pandemic. that continues initiatives. And at see services of tools forward our with touch transformation growth we digital continuously Accounts customer near-term our been work look the engagement various program with points the the excited to the

demonstrated our of effects As patterns. discretionary continue the offset and management will of to weather expenses the teams diligent lingering previously, unpredictable COVID-XX

moving Now that improving to international focused as of calls, business, EURXX and team international previous is much will annual the of experience the our on on mentioned investments earnings we our to over fiscal am EURXX driving with efficiencies by these on million 'XX. to track customer on year million I pleased deliver achieve are benefits report objectives. end recurring that still of very also

more headwind general the team COVID continued more much the to on demonstrate in restrictive in driving laser quarter by addition in first international than where resilience the our than are the and generated shutdowns focus to In tremendous efficiencies, US. offset

foundation performance. for solid providing continued in Our investments are a from with transformation us EBIT

last organizational design. of international transformation is our our call, mentioned component another effort As during earnings

and two in that value. established of now are place centers excellence have fully delivering We

focused center sharing implementation various operating our operational the including brings entities, of between best is on first and excellence. The practices This AmeriGas.

We're on The renewables is the a is bring partnership leveraging continued team bioLPG very to our excellence, the place In as instrumental first and and of development to commercial supply the our excited in of continue excellence about other in and which renewable recent Europe. Europe. our renewable closing, solutions. of Ekobenz having center This US infrastructure. operations the focused and for in effort in to assets de-fossilize quarter the with announcement includes supply pleased capabilities existing challenges we're we

these challenges, level We despite our the strides efforts. employees are that performance our also making with while transformation commitment pleased of our of high demonstrated

Our cost contributed to continued ongoing focus customer impacted quarter a that by solid on operational and warm experience US. was in effectiveness, weather the in improvements results management, pandemic the and COVID-XX the

diversification geographic multiple customers And segments of plus of across was our countries employees, strategy the and by customer Our the of XX proved XX,XXX and communities this serve. safety, underpinned successful. again the we our all dedication

Now John. back to

John Walsh

made Thanks the our to Roger. a on like significant on past on outlook. and we've program now I'd and 'XX few progress close with a discussion fiscal ESG the months comment discussion with over our close

XXXX, were the we capital. and the turned all disheartened with stability, health. Year were Therefore, to we of peace that bring calendar New As in early January would nation's hopeful the our events

Salvation such relied committed United we've communities. for And also strengthening continued also and Philabundance. a better and voice events We've at and still significant our change we and Big of BIDE commitments expand on is at reinforce such Army Coalition, partnerships, the element a to platform UGI. of that existing support social very while inclusion, this a active of provide belonging, diversity efforts need. Affairs environmental to the importance Reading launching Sisters, to recent These days Fundamental, Urban been in force our engage equity as critical our a Brothers, Big for and form crucial in We've UGI. program. believe partnerships good support, ESG being Way, as to front, other We're the for the or our those on ESG our activities element While ahead, or lie

in we've weeks. to Idaho, In in new addition RNG the exciting other forward GHI infrastructure recent the on several project investment moved and projects feedstock

RNG developer a will the natural will fully with enable reduce executed As source. interconnect renewable UGI a Bob agreement in the fuel shippers methane renewable interconnect will significantly gas northeast to United landfill access point States. This gas the operational, become Utilities Pennsylvania. and this with supply to When largest in interconnect landfill mentioned, emissions, a provide

and and Energy emission zero enabler easily achieve announced a sharing supply this Polish applications. Our industrial propane We're same with can As their practices Future customers. proprietary customers bioLPG. is that fuel Future on a will and focused be blended conversion to reduction then as carbon bioethanol secured for for convert the UGI bioethanol to process produced safely LPG, These greenhouse renewable to of solution development Nation's gas this our form supply with a net mandates. potential ONE Ekobenz, renewable to utilities a to waste distribute and collective This be key rights to new achieve Roger accelerate coalition achieving bioLPG, of used see properties to our the targets. to UGI opportunity best and noted, just UGI International as company excited they source to exclusive about efforts to Last to with a Ekobenz's conventional emission a or month, of UGI organic Services our the This is materials bioLPG. partnership Energy product strive and this key renewable joined goals. to has We butane.

our operations. have Future provides ONE new the from and as We opportunity reshape key technologies for a best this sharing practices to in learn forum practice area. great others

our ESG established identifying while a to efforts, a accelerate our Brendan ensure voice team striving to in UGI ESG our company dedicated team within with his closely change Brendan meeting for commitments be and work communities. will across that opportunities our teams and to led the We we're by entire positive also Heck.

year currently our earnings demand conditions. and normal can't outlook. is season, conditions reiterate our Ted's impact. the regarding year is practice I'd experiencing also relatively weather reflecting the review to normal our comments included I We'll those our after earnings operator winter winter full service impact We're guidance. COVID While the across and the comment on territories, guidance it conditions current confident We're the over to that, QX estimate full of your the the our will who pandemic will for I'll be open comfortably call turn on up With $X.XX in guidance that within call. questions. comment back on


we would begin Q&A, call turn brief we remarks. for to to like Before the Bob over some

Robert Beard

and good you Thank morning.

PennEast request and Court pipeline, to up to will yesterday agreed on waiting of 'XX project. timing were the source the we but to still the for case be very Supreme forward this New FERC unclear. on to Regarding is we and eastern pleased into meantime, in look June critical learn we're the timeframe. of that take that natural has hearing to the their act believe our decision sometime We remains necessary, project the the bifurcate Jersey the FY minimal. an Spending additional in Pennsylvania project gas In

that, it operator. to turn with the So back I'll


of line Bank Pollan the first from America. Harry from of comes [Operator Instructions] question Our

is open. line Your now

Harry Pollan

Hi, thanks for taking question. my

John Walsh

Good morning.

Harry Pollan

walk you thinking about ant that about guys year see the kind as you US, of And the into how takes want moving cylinder So the the are why and total of transformation to much here. so current up through despite could C&I volumes just initiative, the starting were the saving understand how was off, pieces down margin XX% to then I much in through year-over-year here? cylinders shortage AmeriGas you that heading business rest puts the down talk

John Walsh

and over comment comment that Roger. turn Yeah, question. - to I'll briefly it I'll then for thanks

but factor was segments specific number the detail. with other one volume you weather. why around comment pandemic, coupled that then impacting think more And Roger in the was I by impacted impacts that don't

Roger Perreault

Yeah. absolutely. Yeah,

weather some So - definitely was what those was drove volume of shortfalls. really reemphasize, the just to

we particular, to being COVID the commercial you when Harry restaurant The cylinder in industry, volumes, low. are resorts, not cylinder currently quite enough with question XX% good example, offset continue is to on your in mentioned shut see our of that think volumes were offsets some experience You segments did exchange, cylinder entertainment, experienced for that we true, down. where that up however, impact,

shortage present to asked things, also a wanting of time, a by unfortunately, up. Yeah, the is couple by whole shortages. industry You the customers cylinder driven a about cylinder experiencing driven as at stock

of where difficult. unique buying an cylinder this and on very a have amount stocking complexity up cylinders unprecedented this AmeriGas. clearly we cylinder sales therefore, has time. where industry are wide It's This an So isn't during seen new right customers to buying been now

been utilizing a cylinders get possible into cylinder of rotations all at much business, inventories Get of resources managing to as also sale couple possible. many things. we've as the how ensuring as as cylinders high-volume our and do to our of points we're to So but and new looking

on trying through have putting on to cylinder matter continue So many how our we're this cylinders we the come that of to really And customer manage fronts. work to buy, we actually as all some year. distributors as throughout that to a some as have fact, of a now limitations started can so more

Harry Pollan

potentially LPG. this I on helpful. volumes, at side? like you guess, And this your are of talk anything US in bioLPG? propane of replace that's on partnership? scope side traditional terms about Can And European it, of looking what Got the percent this the could with and the you bioLPG you

Roger Perreault

first we're a this. We Yeah, supply of comments all, at Investor that, Day, real or couple of so talked we yeah, of de-carbonizing de-fossilizing developing on dedicated about and about LPG. excited renewable really focus LPG, our our on

are at we have various So several technologies. looking projects and we that

assertive - bio Now, its this a in development quite Europe they And been of has one to in are - converting bioethanol converting and partners is where in our we technology de-carbonization. are requirements bioLPG. Europe proprietary particular

immediate product So in we markets, and bring especially get the have can value. Nordic where countries, example, we this for

a This beyond commercial the approach small but our we're liberty to continue pilot what we we exact is assets. I small. say at a is relatively infrastructure. about to relatively is it's going I like but to to can don't it to these I'm are bit leverage see Now these develop way to going and of just projects, continue scale, want not a small scale, the this - see to this, size de-carbonizing that

where whether be be case, waste, US, the these it's products, exist, some human including material in to countries, XX that all throughout very assets ethanol. raw where will farming feeds have of this particular that We localized projects likely or

these the going be are modest the terminals, product enables those leverage from our So all we to distributed, us to customers. storage production and sites of relatively operate. base, assets size, projects to everywhere fact the And us customer we in leverage have absolutely, to our we are move that projects following end our helps infrastructure,

Harry Pollan

be first Got of many. this the could it,

Roger Perreault


John Walsh

this add, is I just Yeah, would to here. John, Rogers's comments

of we attributes being sort the love a this of product product. as terms blend of leverage many We bioLPG As this the conventional immediate. noted, our able first he of as investments. be LPG It's deliver or Hopefully, in the this can pure will noted, it Roger with infrastructure. to

And terms well, some at goals to achieve as gas blend certain on or attributes their to renewable side projects are reductions. look existing certain deliver of we as to who mandates solutions are able natural emission those in in of our and and the that those solutions looking are utilize shared, of attributes networks, being customers immediate

Harry Pollan

that any update squeeze and interesting development it acquisition, One Got your in transaction? if regarding intend it, on that's more here. how you super to recent finance helpful near I could

John Walsh

comment kind of Sure. just now Ted, on right you our status financing? at process of looking want to

Ted Jastrzebski


our from change a isn't really there comments. So earlier

are kind exact hand of still through working worked proportions being covered are that liquidity debt It some through. of that and through the still instrument that's amount and on a will amount of mandatory cash of likely be available, some convertible some will We the be details. combination

So no real yet. change

we when down update an the share best lock approach. will on We

Harry Pollan

it Got guys. you, it, thank appreciate

John Walsh

Thank you.


Thank you.

Shneur question Gershuni next the from comes Our of from line UBS.

open. now line is Your

Shneur Gershuni

of good I've guys. bunch a Hi, morning, got questions.

point. more signal this if something international to last to around color But if margin that and it provide was in tell at color to any super reach need So I a we around There the provide performance is to in can I Just some about is a else? would the level France related helpful? that certificate, I some think issue, normal be start year is it or you if was me wondering returning comment you are just off, can you wondering segment? any conservation

John Walsh

comment. Roger let I'll Sure.

with well to set a regard optimizing the focused satisfy kind within make to the provide had in this few that make end the sure is and energy what company process year I'll our on for seeing as to certificates the I'd some approach comment that. only the satisfying think of a that I effort I And of over last for think but kind we - years quarter France. last let focus, we details Roger shows we're requirements of the

Roger Perreault

certificates the most Shneur the I cost-effective and find Yeah, we continuing Thanks be thanks. dedication, source think conservation to these manner just proved this to Yeah, has absolutely, to for ways beneficial. energy in - have question.

we like ability So at that certificates about. we've seen I'd quarter, things to conservation the our and out the We point this. upside. and to few a margin, talk you secure look about some that energy in first in these talked

and of is Some adjustments margin and able we estimate rest demonstrated that The ongoing these are continue do. the onetime $X.XX. good to to be onetime really do adjustments to roughly we're management we've

Shneur Gershuni

maybe first of pandemic across then program the contributor some the of has And it expense that sense. about perfect a Clearly, last company, makes if to probably related, the been to performance that your in I'm accelerated talked follow control was not the place. sure over but up, year. sort Okay, just you've

capture And on just so I can about an benefit? it, in is optimization? as year, down think basis? forward improving it and if much, think costs a percentage we this sort permanently permanent future step you years, Is know put on as a do expect not this you how go How we sustainable don't of to a

John Walsh

transformation thing other doing like to conditions. of period, think in in the formal would relatively to that, at as savings and limits Shneur, things we be the across majority the functions move item doing of company, travel. aligning generally savings. think some the critical transformation evolution our The are returning and that of operational programs look permanent about a I pandemic savings work we're and - on some we're the and those now some we're - particularly transformation but anyways. small our with recovery right the related is there some pandemic activity, There'll now, I in of associated work, some addition if the that's costs say the more we lower some through the normalized

come office that need learning We are the crystallized past. just have work cost are for a we'll well, than of learned there will we lead we - and sort because to future experience pandemic space, about opportunities as forward et in around that of lot the moving have and cetera, by the reductions differently did

the you that well. the by ongoing going return. a there's Ted know of will the ongoing. be think material that's on predominant But we I So an basis that. our percentage don't elements add to not anything way changing but costs, on of to will be as offset work be if I There savings percentage want some will

Ted Jastrzebski

will - really the established I'd events guess platform. business those in a good operating and platform But I onetime significant that models. that in basically were our add be a What add improvement again, we've continuous what Shneur changes transformations, embarking transformation I'd focused, morning. Yeah, is on

dramatic But structural this So that volume. kind our I growth, flow we're change allow of how like of of maintain any transformation nothing expecting seeing cash think would certainly maintain much what regardless the and what the we're you're savings, a we us very do to onetime is changing business. of that potential changes seeing size level in to with comes

Shneur Gershuni

these correctly? Got the it, of I that so significant result kind a of of a percentage maintained the paraphrase paraphrasing will at so just be end day this term, changes, Am all of as That's longer this,

John Walsh


Ted Jastrzebski


Shneur Gershuni


glad Okay, that. excellent, hear to

Or you rethink right of initial focus we'll the Just West with LDC for to area focus now Virginia acquisitions? this what forward? acquisition let's let's, that we've the the future going is continuing acquisitions? evaluate are continuing done did, just utility then and you does on And close expand

John Walsh

let the certainly weigh briefly But short-term number regulatory authorities certainly moving the for and environment, sure, Having regulatory business in expand process and comment weigh future I'll the opportunities forward for would our as and our Shneur in that a potential the team then on other on West favorably cetera. Virginia. with we focus in well. all to utilities with Mountaineer the look Bob said working is the in of et factors around

that the terms solutions and continue how others. Bob as and anything renewable gas us to like and to renewable opportunities LDC? more in company, as gas focus in in of focus future natural you'd solutions play part a progress of expansion portfolio we'll more introduction would of add role to we impacts of the our terms utilities on the to we and open and own the certainly for that be the look So, with the sector at utility in

Robert Beard

and Yeah, keep eye good morning continually Yeah, of John, our Shneur. we LDC. landscape the thanks on

focus said, given far is along environment ESG regulatory in So what as to we opportunities a on John our with presence as what grow state.

yeah, I'll just John echo said. what So

the of We extremely landscape a top kind regulatory are of become us. and might and important landscape scanning on what continually is for reality staying

we So would that certainly will govern look. where

Shneur Gershuni

you and if more don't two Perfect mind. step guys

Just sort on of your what RNG those targeting to said side, expected continuing you're what returns that on you the respect with are investments?

John Walsh

the growth our are been Yeah, commitments really will support seen, - on own. pleased stands we've in investment looking Shneur, earnings we've company. We're made that we've long-term each with its what returns for obviously,

leverage to forms supply our I renewable can infrastructure, types of our our think, we existing incorporate demand as ability we sort and assess look into for output, chain. output of cases of where we existing investments, and different

quickly. renewable at. company. look, contribute the become at I the very growth far we've see returns looking company as been we're good we've over And the of with in moving rest similar investments been that forward. But in how So evolves the of attractive - returns long-term, so investment said, also but see its We'll terms the that EPS so of on to seen the we across positively the But having projects in investments accretive very we they to we've own. encouraged with stand each returns looking solutions, will ways many types of

Shneur Gershuni

increase not in lasting on maybe as business normal Appreciate XX% color propane kind similar you are tank than guess, at and tips exchange exchange increase business, capitalize impact whether base to Any level a side. final a to is that. And so the in homes, but to seeing saw be related that on at Europe able the I in it's question you a cylinder there's there exchange, the higher thoughts and that And potentially of, general lands installed going been? significant forth. whether on one could just restaurants, pandemic? you're well? tank where it of last on volumes the maybe on related in I trend a has new burner propane But that's the quarter, post to mean, be there

John Walsh

business own XX think consumer detailed change comment us are pandemic I referenced and the he's learning things But that I'll operate. over different level, how of to about consumers demand it think a I our more certain I let knowledge and or Roger we do habits. - do fundamentally expand got and briefly do. their think much do And I at lessons last during I experiencing than months similar yeah, because the that individual here. will sort consumer XX

dining for extending outdoor periods, I see more So longer that people like experience.

- I attracted other initially of the types of So for certain service, see exchange increased so get the is having cylinders where certainly going the was side to that demand. go many for accelerated on don't to out but people think to Cynch accelerated of people them more and That to But certain versus once having convenience them demand I certain cylinder brought and to used I pandemic. by I pandemic them. to we're that thing traction has get a for think speak. are that the were seen going think the back, the surge, in we've think areas And more

to add you would that? what Roger, So

Roger Perreault

heating yeah, your a encouraging, are mean, lot seeing outdoors, only maybe to that applications enabling a are restaurants our eating. couple not where to type possible first I of to the of things, going we're but question part right. Yeah, I patio continue life Shneur, outdoor encouraged, it's yeah, the just more enjoy mean populations

product. It's going Europe. leisure is Europe, to possible. not seeing that that's serving specifically a your not type product And a the is we're question, of used it's in answer business cylinder of continue? Europe certainly more market in pickup. we're everyday cooking. To In really in the So again same type It's

countries doubt US. here more no are And in many some Europe, not strict lockdowns than we're Now, we've seeing because much pickup are the out. dining in what seen people the in

a But the that it's US see patio over last and tanks where mobile in surge we pickup applications place, of and year. pickup. new eating have that the with propane So just we not saw taken of have hold lot here do the taken

Shneur Gershuni

ask me right, of Really many appreciate Thank All so letting that. do you perfect. for questions. all

a safe And much and so day. you thank have very

John Walsh

Shneur. you, Thank

Roger Perreault

Thank you, Shneur.


CEO like remarks. At this you. Walsh, Thank time, over call turn back the no showing I to would closing John further am for I to questions.

John Walsh

look on you for your this you and call. our months developments certainly keeping We updated QX much on Take time and call attention as on again care. you and speaking to with our forward forward very to morning. weeks Thank the earnings progress look


today's call. concludes for this conference gentlemen, and Ladies participating. Thanks

You disconnect. may now