UGI : Consolidated Financial Statements for the quarter ended June 30, 2022

UGI UTILITIES, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the three and nine months ended June 30, 2022 and 2021

(Unaudited)

UGI UTILITIES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

	Page
Glossary of Terms and Abbreviations	1
Financial Statements (unaudited)
Condensed Consolidated Balance Sheets as of June 30, 2022, September 30, 2021, and June 30, 2021	3
Condensed Consolidated Statements of Income for the three and nine months ended June 30, 2022 and 2021	4
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2022	5
and 2021
Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2022 and 2021	6
Condensed Consolidated Statements of Stockholder's Equity for the nine months ended June 30, 2022 and 2021	7
Notes to Condensed Consolidated Financial Statements	8

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UGI UTILITIES, INC. AND SUBSIDIARIES

GLOSSARY OF TERMS AND ABBREVIATIONS

Terms and abbreviations used in this document are defined below:

UGI Utilities, Inc. and Related Entities

Company - UGI Utilities or collectively UGI Utilities and its subsidiaries

Electric Utility - UGI Utilities' regulated electric distribution utility

Energy Services - UGI Energy Services, LLC, a wholly-owned second tier subsidiary of UGI and affiliate of UGI Utilities

PA Gas Utility - UGI Utilities' regulated natural gas distribution business

UGI - UGI Corporation, parent company of UGI Utilities

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

Other Terms and Abbreviations

4.75% Senior Note - A private placement of $90 million principal amount of senior notes due July 2032, issued by UGI Utilities

4.99% Senior Note - A private placement of $85 million principal amount of senior notes due September 2052, to be issued by UGI Utilities on or before September 15, 2022

2021 Annual Report - UGI Utilities' Annual Report for the fiscal year ended September 30, 2021

AOCI - Accumulated Other Comprehensive Income (Loss)

ASC - Accounting Standards Codification

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

ASU - Accounting Standards Update

Bcf - Billions of cubic feet

CDC - Centers for Disease Control and Prevention

COA - Consent Order and Agreement

Core market - Comprises (1) firm residential, commercial and industrial customers to whom UGI Utilities has a statutory obligation to provide service who purchase their natural gas or electricity from UGI Utilities; and (2) residential, commercial and industrial customers to whom UGI Utilities has a statutory obligation to provide service who purchase their natural gas or electricity from others

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

DS - Default service

DSIC - Distribution System Improvement Charge

FERC - Federal Energy Regulatory Commission

Fiscal 2022 - The fiscal year ending September 30, 2022

GAAP - U.S. generally accepted accounting principles

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UGI UTILITIES, INC. AND SUBSIDIARIES

IRPA - Interest rate protection agreement

MDPSC - Maryland Public Service Commission

MGP - Manufactured gas plant

NPNS - Normal purchase and normal sale

NYMEX - New York Mercantile Exchange

PADEP - Pennsylvania Department of Environmental Protection

PAPUC - Pennsylvania Public Utility Commission

PGC - Purchased gas costs

Retail core-market- Comprises firm residential, commercial and industrial customers to whom UGI Utilities has a statutory obligation to provide service that purchase their natural gas from Gas Utility

SCAA - Storage contract administrative agreement

U.S. - United States of America

USD - U.S. dollar

Utilities Term Loan - A $125 million unsecured variable-rate term loan agreement entered into in October 2017, by UGI Utilities, Inc., which was amended in July 2022 to extend its maturity date from October 2022 to July 2027

WHO - World Health Organization

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UGI UTILITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(Millions of dollars)
		June 30,	September 30,			June 30,
		2022			2021			2021
ASSETS
Current assets:
Cash and cash equivalents	$	1		$	1	$	2
Accounts receivable (less allowances for doubtful accounts of $23, $16		159			83			110
and $20, respectively)
Accrued utility revenues		12			8			8
Inventories		71			57			35
Derivative instruments		5			21			9
Prepaid expenses and other current assets		24			32			20
Total current assets		272			202			184
Property, plant and equipment (less accumulated depreciation of $1,359,		3,538			3,332			3,226
$1,288 and $1,273, respectively)
Goodwill		182			182			182
Regulatory assets		318			337			389
Other assets		16			16			16
Total assets	$	4,326		$	4,069	$	3,997
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	7		$	7	$	7
Short-term borrowings		170			130			100
Accounts payable		103			98			76
Regulatory liabilities		6			39			24
Other current liabilities		139			128			140
Total current liabilities		425			402			347
Long-term debt		1,276			1,280			1,207
Deferred income taxes		538			510			497
Pension benefit obligations		69			88			163
Regulatory liabilities		311			313			310
Other noncurrent liabilities		75			73			66
Total liabilities		2,694			2,666			2,590
Common stockholder's equity:
Common Stock		60			60			60
Additional paid-in capital		509			474			474
Retained earnings		1,082			891			902
Accumulated other comprehensive loss		(19)			(22)			(29)
Total common stockholder's equity		1,632			1,403			1,407
Total liabilities and stockholder's equity	$	4,326		$	4,069	$	3,997

See accompanying notes to condensed consolidated financial statements.

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