Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (31928)	11/18/1998 1:19:00 PM
From: The Ox	Read Replies (1) \| Respond to of 95453

UGI Reports Improved Fourth Quarter Results From Operations VALLEY FORGE, Pa., Nov. 18 /PRNewswire/ -- UGI Corporation (NYSE: UGI), reported a smaller seasonal net loss for the fourth quarter ending September 30, 1998 of $.32 per share, excluding a one time loss of $.04 a share associated with certain interest rate protection agreements entered into by UGI's propane unit, AmeriGas Partners, L.P. (NYSE: APU). Fiscal 1998 earnings declined to $1.26 per share, excluding the one time loss. As previously reported, fiscal year results include a $.03 gain on the sale during the quarter ending December 31, 1997 of UTI Energy Corp. stock. By comparison, for the fourth quarter of 1997, UGI reported a $.35 per share loss, excluding a previously reported gain of $.03 per share on the sale during that quarter of UTI stock. Fiscal year 1997 net income was $1.45 per share, excluding one time gains of $.07 on the sale of UTI stock and $.05 per share on the sale of Atlantic Energy, both as previously reported. Lon R. Greenberg, UGI chairman and chief executive officer, attributed the decrease in adjusted earnings for the fiscal year principally to warmer winter and spring weather which adversely affected all business units. "The warm winter and spring weather hurt our 1998 retail propane volumes," said Greenberg. "However, El Nino's effects on our 1998 results did not deter us from pursuing our strategy of growing our propane business through investing in 'scratch start' locations, acquiring well-run local distributors, and expanding our PPX Prefilled Propane Xchange(TM) program." Retail volumes declined 2.7% to 785.3 million gallons on weather that was 8.7% warmer than normal and 7.6% warmer than 1997. The effects of the warmer weather were partially offset by slightly higher unit margins resulting from lower propane product costs. Pretax income from propane operations was $18,800,000 down from $33,100,000 in 1997. "AmeriGas' cash flow from operations improved significantly in 1998, due in large part to excellent working capital management as well as lower product cost. This gave us the flexibility needed to delay the refinancing of our acquisition line into 1999," said Greenberg. When AmeriGas postponed the refinancing it recorded a loss on the interest rate protection agreements since they no longer qualified for hedge accounting treatment. The agreements were designed to fix a portion of the interest rate on a refinancing of debt planned for late fiscal 1998. As the corporate debt markets stabilize, AmeriGas expects to realize lower future interest costs when the refinancing occurs. "I am very pleased with the efforts of AmeriGas' employees to operate more efficiently and hold down costs in the face of a challenging year brought on by the unprecedented warm weather," Greenberg said. The 2.7% increase in operating expenses was attributed to the growth initiatives mentioned above. Pretax income from UGI Utilities was $61,700,000 in fiscal 1998, down from $68,800,000 in fiscal 1997. Weather in the Gas Utility service territory was 16.3% warmer than normal in fiscal 1998 which resulted in a 14.5% reduction in volumes sold to core market customers. Although volumes to interruptible customers who have alternate fuel capability were virtually unchanged, less favorable spreads between gas and oil prices during 1998 reduced margin from these customers. The Gas Utility was able to offset a portion of the margin declines from core market and interruptible customers through lower operating expenses. "Our Gas Utility grew its heating customer base by over 3% in 1998," said Greenberg. "Nearly 70% of all new housing in our service territory has UGI gas service. This rising market share bodes well as normal weather returns." Results for the Electric Utility were comparable to those of a year ago. "I am proud of our Utilities' employees who continue to reduce operating costs while improving customer service and expanding the customer base," noted Greenberg. In energy marketing, pretax income improved to $2,000,000 in fiscal 1998, up from $1,700,000 in 1997. Greenberg said energy marketing continues to operate profitably despite the effects of warmer weather and lower oil prices relative to natural gas. UGI is a holding company with propane marketing, utility and energy marketing subsidiaries. Through subsidiaries, UGI owns 58% of AmeriGas Partners, L.P., the nation's largest retail propane marketer. Comprehensive information about UGI Corporation is available on the World Wide Web at ugicorp.com. SOURCE UGI Corporation CO: UGI Corporation ST: Pennsylvania IN: UTI SU: ERN 11/18/98 13:00 EST prnewswire.com

To: upanddown who wrote (31928)	11/19/1998 9:50:00 PM
From: articwarrior	Read Replies (2) \| Respond to of 95453

"Both times, the OSX went down faster and came back faster than the S&P 500. That is not happening now. " bigcharts.com. If you look at the chart it appears a pullback in the S&P 500 by end of next week. One third the extension with each dip. That is if you correlate the swings of oil with the dips in S&P. Also consider rate cuts about same time of bottoms. Interesting theory.... I'll have to watch this development... Time to think about what to buy....What's your thoughts John?