2012 UGI Corporation conference call. All participants will be in listen-only mode. (Operator Instructions) After today’s presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mr. Hugh Gallagher, Treasurer. Mr. Gallagher, the floor is yours sir.

Thank you. Good afternoon everyone and thanks for joining us today. As we begin, let me remind you that our comments today will include certain forward-looking statements, which management of UGI and AmeriGas believe to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s control. You should read our annual reports on Form 10-K for a more extensive list of factors that could affect results, among them are, adverse weather conditions; cost volatility and availability of all energy products; increased customer conservation measures; the impact of pending and future legal proceedings; domestic and international political, regulatory and economic conditions; currency exchange rate fluctuations; the timing of development of Marcellus Shale gas production; the timing and success of our commercial initiatives and investments to grow our businesses and our ability to successfully integrate acquired businesses including Heritage Propane and achieve anticipated synergies. UGI and AmeriGas undertake no obligation to release revisions to their forward-looking statements to reflect events or circumstances occurring after today. In addition, our remarks will reference certain non-GAAP financial measures that management believes provides useful information to investors to more effectively evaluate the year-over-year results of operations of the company. These non-GAAP financial measures are not comparable to measures used by other companies and should be considered in conjunction with performance measures such as cash flow from operating activities. With me today are Jerry Sheridan, President and CEO of AmeriGas Propane; Kirk Oliver, CFO of UGI Corporation; John Walsh, President and COO of UGI and your host Chairman and CEO of UGI, Lon Greenberg. Lon?

Thank you. Let me welcome everybody to our call as well. I hope you all had the opportunity to review our press releases. Given that we just had our Analyst Meeting several weeks ago, obviously, it wasn’t too much new in our press releases. Our fiscal year earnings per share at UGI and our EBITDA at AmeriGas for fiscal year ‘12 were consistent with our prior announcements. Probably, the only new information in that release was that we were off to a good start this fiscal year, although we all know it's quite early in the fiscal year. Weather was close to normal levels during October and our businesses performed consistent with our expectations during that time. During this call, you are going to hear from Kirk, John and Jerry and they will provide you with a lot more substantive information about our accomplishments during fiscal year ‘12 and our financial position as we move forward. Following their remarks, I will jump back in and give you a few closing observations. And so with no further adieu, Kirk, the floor is yours.

Thanks Lon and good afternoon everybody. This is my first conference call here at UGI and I am really excited about being the member of the team and a part of this company’s future. I will be providing a brief overview of results for the year followed by a discussion of liquidity, debt, cash flow and capital expenditures. Earlier today, we reported a seasonal net loss for the fourth quarter of $14.7 million or $0.13 per share, compared with a seasonal net loss of $22.4 million or $0.20 per share in the prior year quarter. The current year quarter included the impact of $0.04 in acquisition and transition expenses. Last year’s quarter included the negative impact of about $0.08 related to losses on extinguishment of debt and currency hedges. So on an adjusted the seasonal net loss for the current year quarter was slightly better than last year. For the fiscal year ended September 30, 2012, we reported net income attributable to UGI of $199.4 million or $1.76 per diluted share compared to $232.9 million or $2.06 per diluted share in the fiscal ‘11. These results are in line with the guidance we first issued in April and recently updated it at our Analyst Day three weeks ago. Fiscal 2012 was marked by record setting warm weather in the U.S. that had a significant impact on all of our domestic businesses. Weather was also much warmer than normal in Europe resulting in a difficult operating environment for international propane as well In addition to the impact of warm weather, current year results included the negative impact of about $0.14 of adjustments related to acquisition and transition expenses and extinguishments of debt. Fiscal 2011 results included unusual items of about $0.04 in net expense as outlined in our earnings release. In…

Thanks Kirk. 2012 was a noteworthy year for UGI. While much of our discussion during the year focused on the unusually warm weather and its impact on our businesses. In the long run, the most critical events of 2012 for UGI were the strategic investments made over the past 12 months. This has been a year of intense activity for us as we address the challenges presented by the warm weather while driving forward with our strategic activities of acquisition integration and capital projects execution. We covered many of these activities in detail during our recent Analyst Day. So I will provide a brief updates on a few key areas. This has been an unprecedented year of activity for our gas utility team. Our infrastructure replacement program has been enhanced with a record level of investments in fiscal year ’12. We recently filed a settlement agreement with the Pennsylvania PUC on the Allentown investigation with specific timetables for infrastructure replacement. We are awaiting the PUC’s decision on our proposed settlement and are prepared to execute the accelerated program. We also set a new record for growth in the gas utility driven by the unprecedented demand for fuel oil to natural gas conversions. Our residential conversions and upgrades were up over 50% versus last year and our commercial account additions were up about 20%. Net customer growth in our gas utility top 2% for the year. Acquisition integration was the major focus for our propane businesses in both the US and Europe. We had a full 12 months to execute our integration plan in Europe for the businesses we acquired from Shell. Our teams achieved our synergy goals and incurred most of the transition expenses in FY ’12. So we're in a strong position as we start the new fiscal year.…

Thanks John. For AmeriGas, earnings in the fourth quarter met our expectations. We finished the fiscal year with adjusted EBITDA of $384.3 million. This is at the high end of our guidance that we issued in July and slightly higher than the update we provided at UGI’s Analyst Day in October. For fiscal 2012, weather was a record 19% warmer than normal compared to weather that was essentially normal in fiscal 2011. Retail gallons sold were 1 billion gallons of 16% for the year due to the roughly nine months of Heritage volume included in our results offset by the impact of the record warm heating season temperatures. Retail unit margins increased over prior year as we benefited from a significant decline in the underlying cost of product which averaged 5% lower in fiscal 2011. Cost drop such as these are historically beneficial to margins although the timings of this year’s product cost drop was offseason and didn’t have the same impact of similar price declined would have had in the peak heating season months. Mont Belvieu cost as of September 30, it was $0.91 down 40% from year earlier. Stability caused these lower levels is very helpful to the industry as a results in more affordable heating bills for customers thus producing the focus on conservation. Despite the significantly warmer temperatures that dramatically affected volumes in earnings for AmeriGas and the entire retail propane industry, fiscal 2012 was successful in the sense that we are able to accomplish all of our objectives for the Heritage acquisition, including closing acquisition in mid-January inline with our expectations when we announced the deal in October, financing the debt portion of the transaction at under 7% also inline with our original expectations. Selection of our field management team with a great blend of…

Okay, thanks Jerry. Let me close with the following few comments. I want to reiterate our guidance for 2013 which was contained in the release at $2.45 to $2.55 a share, and Jerry mentioned the guidance for AmeriGas as well. I hope you understand what's implicit in that guidance is that we expect a very good year this year, and as we've said we are off to a good start doing that. We based our views on our guidance, on the progress we made last year. John and Jerry very ably described that progress, and of course as Jerry said we are banking on a return to what is sometimes referred to as more normal winter weather. Kirk also did a great job of describing our very strong financial position, which of course allows us to pursue the strategies that we have. In that regard, we continue to make progress in pursuing those strategies, both John and Jerry talked about that and we continue to make progress on our acquisition strategy as we described that at our offsite meeting. We stated in the press release today and on the call probably several times, its very early in the fiscal year and so we don't want to get too excited, but its better to start this October the way we did rather than the way we started last October, given the warm weather that we encountered both in October and November last year. So we are feeling good as we sit here today about our ability to move forward productively and show you what the earnings power of our businesses are. So let me conclude by thanking you for your support, and we look forward to talking to you again in January after the conclusion of our first quarter earnings. At this point Michael I guess we can open it up to people and ask some questions.

(Operator Instructions) The first question we have comes from Carl Kirst of BMO Capital Market. Please go ahead.

Not a whole lot here, but just really a couple of questions and first and John I appreciate the update on Sandy on the (inaudible). Was there any quantifiable impact to AmeriGas for Sandy be that on the negative or even people perhaps stocking up on propane on the positive. I mean will we see any impact on that in the December quarter?

There was a significant activity since we have operations across the whole region. It's not material. As I mentioned, on an overall basis, basically the entire company was back to normal operating mode by November 1, but I think the AmeriGas did a great job, first of all getting our operations fully back on stream and providing coverage, but then also working with some key customers and Jerry can comment on that.

Yeah, it certainly affected some of our locations that loss power temporarily and hurricanes are traditionally very good for our ACE business, but not a significant work force.

Okay, I appreciate that. And second on Sandy and this is really the question, not sure it will have a, it's hard to imagine how but if we would have any impact on the CommonWealth negotiations and I am thinking more here about, given the path of the storm, has there been any impact on a possible routing or thoughts of different routes. I wouldn’t think so but just want to confirm that.

No, no impact at all, in fact from a flooding standpoint it was certainly in the areas where which are non coastal areas where we operate it was much less of an event than the events last year between hurricane Irene and tropical storm were much more problematic in terms of flooding. So no impact on the CommonWealth pipeline and for our facilities on the gas distribution side which are inland very, very limited impact.

Understood, thank you. And then last question is just really I don’t think actually [called] this down from the Analyst Day notes, but can you refresh us where we stand on the European euro hedges for both fiscal 2013 and 2014 as far as percentage hedged and the level?

We are following our normal program, so we are hedged for fiscal ‘13 fully and fiscal ‘14 we typically have around two-thirds of our needs hedged. We usually lay around and it will fall two-thirds, one-third and we are following that program again.

do you have the level?

It’s slightly above a $1.30.

And a $1.31 this year.

Would that hold into ‘14 as well?

It’s pretty close to that.

The next question we have comes from Sharon Lui of Wells Fargo.

So just to confirm on so no damages sustained from Sandy on the physical assets either.

Nothing appreciable.

Minimal, not take appreciable nothing to clear, and we were very fortunate just with the path of the storm.

In our electric division by the way, did an absolutely outstanding job of getting people back online as John mentioned, we had a high percentage of our customers who lost of electricity, but our team was well prepared, we had extra resources available and as John mentioned within 30 hours or so firstly everybody was back with electricity in our area and that was very concerted effort on our part to be prepared and have the right resources there.

Next we have Mark Barnett of Morningstar. Please go ahead.

Just couple of quick questions on the AmeriGas side. Is there any change you could give a little detail on your normalized volume projections underpinning the 2013 forecast, maybe to give us a better idea of some of the attrition that you saw after the combination and kind of a weather normalized runway going forward?

As you know we don't generally talk about specific volume or more than targets in our plans. Certainly we also plan on a deal of this magnitude to have some degree of attrition [movement] volume location there is some customer upset, but we are so far on track with our expectations on volume side.

So far it’s been fairly limited on the attritions and I guess?

Yeah, right within our expectations Mark. One of that hard parts of volume in this environment was it so warm last year that your base of volume that you have is difficult enough to try to figure out because customers use significantly less last year and all of the weather normalization models people have are based on assumed grades of degree day usage, and so when you adjust those volumes for degree days and when its so warm it becomes hard to get true understanding of your base. We have a better feel of numbers of the customers if you will and we are right within our expectations and as Jerry mentioned no undue loss of customers associated with the acquisition, in fact we are probably doing a little better in many areas than we suspected.

One final comment I would make on demand is, and Jerry touched on his comments is the beneficial impact of lower product costs which is helpful you know you have price induced or price influenced conservation and we are pleased that our customers are seeing lower prices or cost to lower so that's a good thing in terms of demand. I will say on margins that I think Jerry said at the offsite that we are not, in response to a question, we are not expecting margins to be significantly higher or significantly lower. We kind of see stability with margins and overtime margins increasing with inflation and operating expenses and things but from the margin side of your equation we are not expecting there to be a significant changes either way up or down in margins compared to where we were last year or the year before.

And just one more quick question, now that you have a little bit more time to fully realize the synergies you had initially projected, obviously you talked a little bit generally about some further upside in the future, do you have maybe a better idea of kind of a range that you might be expecting there or is it still kind of too early for that.

Too early. We are happy that we got ahead of the $50 million or up to $60 million now that we certainly will realize this year. And as we get into Phase 2 we will see if that number grows but we are in a position to be saying it has.

(Operator Instructions) It appears that we have no further questions at this time. We will go ahead and conclude our question-and-answer session. I would now like to turn the conference back over to management for any closing remarks. Gentlemen?

That's fantastic Mike, thank you. Well, we are happy to close out the call. We appreciate all of your interest particularly given that we just had our analyst call. We look forward to reporting to you at the next quarterly call and we are comfortable that we are on the right track and we will demonstrate that to you in the future. So talk to you in January and everybody have a safe and happy holiday as we move forward. Bye.

And we thank you sir and to the rest of management for your time and you also have a great holiday season. The conference call is now concluded. We thank you all for attending today's presentation. At this time you may disconnect your lines. Thank you and take care everyone.