UGI : Consolidated Financial Statements for the quarter ended December 31, 2021

UGI ENERGY SERVICES, LLC

AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

and MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

for the three months ended December 31, 2021 and 2020

(Unaudited)

UGI ENERGY SERVICES, LLC AND SUBSIDIARIES

TABLE OF CONTENTS

	Pages
Glossary of Terms and Abbreviations	3
Financial Statements (unaudited):
Condensed Consolidated Balance Sheets as of December 31, 2021, September 30, 2021 and December 31,	5
2020
Condensed Consolidated Statements of Comprehensive Income for the three months ended December 31,	6
2021 and 2020
Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2021 and	7
2020
Condensed Consolidated Statements of Changes in Member's Equity for the three months ended	8
December 31, 2021 and 2020
Notes to Condensed Consolidated Financial Statements	9
Management's Discussion and Analysis of Financial Condition and Results of Operations	17

UGI ENERGY SERVICES, LLC AND SUBSIDIARIES

GLOSSARY OF TERMS AND ABBREVIATIONS

Terms and abbreviations used in this document are defined below:

UGI Energy Services and Related Entities

AmeriGas - AmeriGas Propane, L.P., an indirect wholly-owned subsidiary of UGI

Company - UGI Energy Services, LLC and its consolidated subsidiaries collectively

Energy Services - UGI Energy Services, LLC, a wholly-owned subsidiary of Enterprises, or collectively, UGI Energy Services, LLC and its consolidated subsidiaries

Enterprises - UGI Enterprises, LLC, a wholly-owned subsidiary of UGI

GHI - GHI Energy, LLC, a Houston-based renewable natural gas company and indirect wholly owned subsidiary of Energy Services

Stonehenge - Stonehenge Appalachia, LLC, a midstream natural gas gathering business, which includes 47 miles of pipeline and associated compression assets

UGI - UGI Corporation

UGI Utilities - UGI Utilities, Inc., a wholly-owned subsidiary of UGI

UGID - UGI Development Company, a wholly-owned subsidiary of Energy Services

Other Terms and Abbreviations

2020 three-monthperiod - Three months ended December 31, 2020

2021 Annual Report - Energy Services' Annual Report for the fiscal year ended September 30, 2021 2021 three-monthperiod - Three months ended December 31, 2021

AOCI - Accumulated Other Comprehensive Income (Loss)

ASC - Accounting Standards Codification

ASC 606 - ASC 606, "Revenue from Contracts with Customers"

ASU - Accounting Standards Update

CARES Act - Coronavirus Aid, Relief, and Economic Security Act

CDC - Centers for Disease Control and Prevention

COVID-19- A novel strain of coronavirus disease discovered in 2019

Energy Services Credit Agreement - Third Amended and Restated Credit Agreement entered into on by Energy Services, as borrower, providing for borrowings up to $260 million, including a letter of credit subfacility of up to $50 million, scheduled to expire in March 2025

FASB - Financial Accounting Standards Board

FERC - Federal Energy Regulatory Commission

Fiscal 2021 - The fiscal year ended September 30, 2021

Fiscal 2022 - The fiscal year ending September 30, 2022

GAAP - U.S. generally accepted accounting principles

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UGI ENERGY SERVICES, LLC AND SUBSIDIARIES

ICE - Intercontinental Exchange

LNG - Liquefied natural gas

NPNS - Normal purchase and normal sale

NYMEX - New York Mercantile Exchange

Receivables Facility - A receivables purchase facility of Energy Services with an issuer of receivables-backed commercial paper

RNG - Renewable natural gas

SCAA - Storage Contract Administrative Agreements

Stonehenge Acquisition - Acquisition of Stonehenge Appalachia, LLC, which closed January 27, 2022 USD - U.S. dollar

WHO - World Health Organization

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UGI ENERGY SERVICES, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions of dollars)

	December 31,		September 30,		December 31,
		2021			2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	109	$	197	$	24
Restricted cash		19			21			25
Accounts receivable (less allowances for doubtful accounts of $5, $4 and		248			130			177
$2, respectively)
Inventories		43			36			21
Derivative instruments		35			50			7
Prepaid expenses and other current assets		37			51			49
Total current assets		491			485			303
Property, plant and equipment (less accumulated depreciation of $327,		1,668			1,678			1,704
$310 and $271, respectively)
Goodwill		337			337			336
Intangible assets, net		259			262			275
Derivative instruments		20			34			1
Investments in equity method investees		172			163			197
Other assets		42			42			39
Total assets	$	2,989	$	3,001	$	2,855
LIABILITIES AND MEMBER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	10	$	10	$	10
Short-term borrowings		-			-			79
Accounts payable		207			140			106
Derivative instruments		20			23			27
Other current liabilities		44			41			51
Total current liabilities		281			214			273
Long-term debt		704			706			709
Deferred income taxes		257			290			208
Derivative instruments		10			21			29
Other noncurrent liabilities		11			13			14
Total liabilities		1,263			1,244			1,233
Member's equity		1,726			1,757			1,622
Total liabilities and member's equity	$	2,989	$	3,001	$	2,855

See accompanying notes to condensed consolidated financial statements.

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