Energy Economic Forecast

October 28, 2014

Anthony Cox Director, Midstream Business Development

Agenda

• About UGI

• Midstream and the Infrastructure Gap

• UGI Solutions

• Announced Projects

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UGI Corporation

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UGI operates in 50 states and 16 European countries

Domestic Propane International

Propane UGI Utilities

Midstream & Marketing

AmeriGas also operates in

Hawaii and Alaska

UGI Energy Services

4

Natural Gas • ~ 100 Bcf

• > 41,000 locations

• 36 LDCs

Power • > 2 MM

MWhrs

• > 10,000 locations

• 20 EDCs

Pipelines , Liquid Fuels, Peaking and Gathering

• 1.25 Bcf LNG Storage , 15 Bcf NG storage

• Existing and in-development, ~1 Bcf/d of gathering

Generation • Hunlock: 125

MWs combined cycle

• Conemaugh: 102 MWs coal-fired

• Renewable energy: ~ 17 MWs

Generation Midstream Marketing

UGI Energy Services, LLC /

What is Midstream?

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PA and Surrounding States Transmission

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Regional Basis Pricing

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-$3.50

-$2.50

-$1.50

-$0.50

$0.50

$1.50

$2.50

$3.50

$4.50

18

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17

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3

2-D

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17

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1-J

an

-14

16

-Jan

-14

31

-Jan

-14

15

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b-1

4

2-M

ar-

14

17

-Mar-

14

1-A

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16

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1-M

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16

-May

-14

31

-May

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30

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15

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30

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29

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28

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$/M

MB

TU

)

TETCO-M3

TGP-Z4 Marcellus

Leidy-Transco

Transco-Z6 (non-NY)

Transco Z6 non-NY Key Dates

Date Price

23-Jan-13 $9.42

22-Nov-13 $3.04

2-Jan-14 $20.66

6-Jan-14 $90.40

21-Jan-14 $135.35

22-Jan-14 $115.03

23-Jan-14 $46.82

27-Jan-14 $90.05

28-Jan-14 $28.64

Date Price

23-Jan-13 $10.42

2-Jan-14 $21.91

6-Jan-14 $55.40

21-Jan-14 $90.35

22-Jan-14 $93.54

23-Jan-14 $34.32

27-Jan-14 $84.05

28-Jan-14 $26.64

TETCO

M3 Key Dates

Spot Price Comparison – Texas Eastern M3

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$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Capacity vs. City Gate Prices – 2013-14

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$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

Texas Eastern Zone M-3 MarcellusCapacity

Announced Projects in the Northeast

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Source: Bentek Energy, Benposium Sept ‘14

UGIES Marcellus-related Projects Through 2017

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Shorter, More Cost Effective Transport

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Midstream Case Study: Auburn & Union Dale

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PennEast Pipeline – One Part of the Solution

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PennEast Pipeline Developers

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UGI LNG Solutions

Traditional

• LNG is used to serve peak natural gas demand during extreme cold weather

o LNG provided by UGI for past four decades

o Security and reliability of supply top priority

• Infrastructure is “Tried and True”

o Liquefaction Process and Cryogenic Storage Designs

Non-Traditional

• Primary Driver is economics

o Other factors include LNG’s environmentally friendly properties

o LNG is an attractive option to Diesel, Gasoline, Waste Oil

• Infrastructure is in various phases of development

UGI Energy Services, LLC / 16

Thanks!

Anthony Cox Director, Midstream Business Development