UGI : Consolidated Financial Statements for the quarter ended March 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 and six months ended March 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 March 31, 2021, September 30, 2020 and March 31, 2020	5
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended March	6
31, 2021 and 2020
Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2021 and 2020	7
Condensed Consolidated Statements of Changes in Member's Equity for the six months ended March 31,	8
2021 and 2020
Notes to Condensed Consolidated Financial Statements	9
Management's Discussion and Analysis of Financial Condition and Results of Operations	18

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

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

GHI - GHI Energy, LLC, which was acquired by Energy Services in Fiscal 2020

Pennant - Pennant Midstream, LLC, a Delaware limited liability company

PennEast - PennEast Pipeline Company, LLC

Pine Run - Pine Run Gathering, LLC

UGI - UGI Corporation

UGI PennEast, LLC - A wholly-owned subsidiary of Energy Services that holds a 20% membership interest in PennEast UGI Utilities - UGI Utilities, Inc., a wholly-owned subsidiary of UGI

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

UGI Pine Run, LLC - A wholly owned subsidiary of Energy Services that holds a 49% membership interest in Pine Run

Other Terms and Abbreviations

2020 Annual Report - Energy Services' Annual Report for the fiscal year ended September 30, 2020 2020 six-monthperiod - Six months ended March 31, 2020

2020 three-monthperiod - Three months ended March 31, 2020 2021 six-monthperiod - Six months ended March 31, 2021

2021 three-monthperiod - Three months ended March 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

CMG - Columbia Midstream Group, LLC

Conemaugh - Conemaugh generation station, a 1,711-megawatt,coal-fired electricity generation station located near Johnstown, Pennsylvania

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

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UGI ENERGY SERVICES, LLC AND SUBSIDIARIES

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 2020 - The fiscal year ended September 30, 2020

Fiscal 2021 - The fiscal year ending September 30, 2021

Fiscal 2022 - The fiscal year ending September 30, 2022

GAAP - U.S. generally accepted accounting principles

ICE - Intercontinental Exchange

LNG - Liquefied natural gas

NOL - Net operating loss

NPNS - Normal purchase and normal sale

NYMEX - New York Mercantile Exchange

PennEnergy - PennEnergy Resources, LLC

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

SCAA - Storage Contract Administrative Agreements

Stonehenge - Stonehenge Energy Resources III, LLC, a portfolio company of Energy Spectrum Partners VIII, L.P.

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)

		March 31,		September 30,			March 31,
		2021			2020			2020
ASSETS
Current assets:
Cash and cash equivalents	$	53	$	23	$	21
Restricted cash		24			9			34
Accounts receivable (less allowances for doubtful accounts of $2, $2 and		160			99			134
$1, respectively)
Inventories		13			25			16
Derivative instruments		10			18			6
Prepaid expenses and other current assets		58			40			12
Total current assets		318			214			223
Property, plant and equipment (less accumulated depreciation of $288, $256		1,700			1,704			1,741
and $287, respectively)
Goodwill		336			336			336
Intangible assets, net		271			280			267
Derivative instruments		2			7			6
Investments in equity method investees		260			190			190
Other assets		38			35			37
Total assets	$	2,925	$	2,766	$	2,800
LIABILITIES AND MEMBER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	10	$	10	$	10
Short-term borrowings		17			19			43
Accounts payable		117			94			92
Derivative instruments		28			21			39
Other current liabilities		53			42			30
Total current liabilities		225			186			214
Long-term debt		708			711			713
Deferred income taxes		244			199			166
Derivative instruments		30			29			32
Other noncurrent liabilities		16			14			20
Total liabilities		1,223			1,139			1,145
Commitments and contingencies (Note 5)
Member's equity		1,702			1,627			1,655
Total liabilities and member's equity	$	2,925	$	2,766	$	2,800

See accompanying notes to condensed consolidated financial statements.

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