UGI presentation on customer conversions, Citigroup 2013 Global Energy and Utilities Conference

May 15, 2013 1

Growth Opportunities: Converting Customers To Natural Gas* John Walsh, President and CEO

*Originally presented at the Citigroup 2013 Global Energy and Utilities Conference, May 15, 2013

May 15, 2013 2

This presentation contains certain forward-looking statements that management believes 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 UGI’s Annual Report 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, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, the impact of pending and future legal proceedings, domestic and international political, regulatory and economic conditions including currency exchange rate fluctuations (particularly the euro), the timing of development of Marcellus Shale gas production, the timing and success of our commercial initiatives and investments to grow our business, and our ability to successfully integrate acquired businesses, including Heritage Propane, and achieve anticipated synergies. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.

About This Presentation

May 15, 2013 3

Background: UGI Utilities Pennsylvania’s largest gas utility • ~600,000 gas customers

• 45 of the 67 PA counties served

• Approximately 12,000 miles of main

Major fuel oil conversion program • Fuel oil still prevalent in PA

• Conversion program for 20+ years

• >40,000 residential conversions

since 2000

•Those customers will save

approximately $63 million in 2013

May 15, 2013 4

Oil is Losing Share in the Northeast

Utility gas 51%

LP gas 4%

Electricity 12%

Fuel oil, kerosene

30%

Coal 0%

Wood 2%

Other or no fuel

1%

Northeast Heating Fuel, 2010

Utility gas 44%

LP gas 2%

Electricity 12%

Fuel oil, kerosene

38%

Coal 1%

Wood 2%

Other or no fuel 1%

Northeast Heating Fuel, 1990

Source: US Census Data, House Heating Fuel Northeast includes PA, NJ, NY, CT, NH, VT, RI, MA, ME

May 15, 2013 5

Natural Gas/Heating Oil Spread

-$2

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

UGI Utilities Residential Gas Conversions/Upgrades and Gas/Oil Spread

Conversions Spread in Cost

Resid

entia

l Con

vers

ions

/upg

rade

s

Spre

ad, i

n M

MBT

U

UGI natural gas customers will save approximately $1,600 versus heating oil

customers during the 2012/13 winter

May 15, 2013 6

Mechanics of a Conversion Goal: Increase gas market share via conversions while significantly reducing energy costs to PA families and businesses

• Estimated 480,000 non-customers along the main (within 80 ft.), mainly using oil

May 15, 2013 7

New Customer Growth

2,000

6,000

10,000

14,000

18,00019

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

(F)

Total Customer Additionals

Residential New Homes Residential Conversions Residential Upgrades Commercial Additions

+2% average annual net customer growth

May 15, 2013 8

Keys to Current & Future Conversion Success

Understand/address key needs of conversion customers • Web-based tools to help them assess the savings opportunity • Direct contact with customers to review our project plan • Timely execution and clear scope of responsibilities

UGI recently filed its Growth Extension Tariff for Gas (GET GAS)

• Enables access to gas in unserved and underserved areas • 10-year surcharge to new customers in lieu of upfront investment • Five-year pilot program: $15 MM annual commitment • Potential to reach an additional 300,000 homes and businesses

May 15, 2013 9

Investor Relations: 610-337-7000 Simon Bowman (x3645) [email protected]