RE: Ugi Corp(UGI) - Sum of the parts analysis
Still shows UGI significantly undervalued when you break it up between regulated & unregulated business, As well as using sum of the parts. More food for thought
Generated by AI BARD
UGI Corp. Top 5 Assets and Estimated Market Value (as of December 23, 2023)
UGI Corp. Top Assets and Estimated Market Value (as of December 23, 2023)
Including Main Assets and Regulated Utility Business Breakdown:
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Yes, UGI does provide electric services to retail customers and businesses in a limited area of Pennsylvania.
While UGI is primarily known for natural gas distribution, it also operates an electric utility serving roughly 62,000 customers in Luzerne and Wyoming counties in northeastern Pennsylvania. This region represents a small portion of their overall customer base, with the vast majority being natural gas customers.
Therefore, depending on your location within Pennsylvania, you might be able to receive electric services from UGI. However, it's crucial to check their service map or contact them directly to confirm availability in your specific area.
Here are some additional details about UGI's electric service:
- They mainly supply electricity, not generate it. They purchase electricity from other sources and deliver it to homes and businesses through their own transmission and distribution lines.
- Customers in UGI's electric service area have the option to choose their electric supplier, meaning they can shop around for the best rates while UGI continues to deliver the electricity.
- You can find more information about UGI's electric service on their website: ugi.com
Remember, UGI's natural gas distribution coverage is much broader than their electric service, so it's highly likely they provide natural gas to your area even if they don't offer electric services there.
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UGI's Regulated Utility Business Valuation and Performance (Excluding AmeriGas)As requested, we'll exclude the AmeriGas division from the previous table:
Estimated Market Value:
- Natural Gas Distribution Networks: 2,500 - 3,000 Million USD
- Electric Utility Segment: 200 - 300 Million USD
- Total Regulated Utility Business: 2,700 - 3,300 Million USD
Valuation per Share:
- Based on 236.8 million outstanding shares:
- Natural Gas Distribution: 10.87 - 13.04 USD/share
- Electric Utility: 0.85 - 1.27 USD/share
- Total Regulated Utility: 11.72 - 14.31 USD/share
Total Revenues (FY2023 Estimated):
- Natural Gas Distribution: 2,400 - 2,600 Million USD
- Electric Utility: 150 - 200 Million USD
- Total Regulated Utility: 2,550 - 2,800 Million USD**
Direct Expenses (FY2023 Estimated):
- Natural Gas Distribution: 1,600 - 1,800 Million USD
- Electric Utility: 100 - 120 Million USD
- Total Regulated Utility: 1,700 - 1,920 Million USD**
Direct Expenses per Share (FY2023 Estimated):
- Natural Gas Distribution: 6.88 - 7.61 USD/share
- Electric Utility: 0.42 - 0.51 USD/share
- Total Regulated Utility: 7.30 - 8.12 USD/share**
Notes:
- The valuation and performance figures remain unchanged from the previous table, as they only considered the regulated utility business (natural gas and electric) and excluded AmeriGas.
This revision clarifies the valuation and performance metrics specifically for UGI's regulated utility business, showcasing its market value, revenue generation, and operating costs independent of the AmeriGas propane distribution segment. |
