UGI Corporation (NYSE:UGI) Q1 2023 Earnings Call Transcript

Robert Beard: Sure. Yes, what we’ve said so far is that we filed the necessary paperwork to notify the commission that we will be filing a rate case in the not-too-distant future. We’re not going to predict whether we’re going to get it in FY ’23 or calendar year ’23. Since this is really under UGI’s ownership, the first case that we’ll execute in West Virginia. I will tell you, and I’ll reiterate that as I have in the past, we find so far that the West Virginia Commission is very reasonable and very pragmatic, but we don’t want to get out ahead of the process. So we’ll have more in the coming months on that.

Michael Gaugler: Okay. And then next question and last. Given where you are right now with the RNG projects that are already announced. Do you pretty much have the scale that you want? Or should we expect more?

Roger Perreault: Yes. As we highlighted, Michael, we’re making good progress with our 3R strategy and more specifically the renewables portion of that strategy. So we’ve now committed over $450 million in RNG projects. I think we have a very healthy pipeline, right? So we have a pipeline of opportunities, but as we always stress, we are very, very disciplined looking at these projects. So we are targeting double-digit rates of return. We take conservative assumptions with RINs and LCFS values, and we’re looking at these projects. So I certainly expect for us to continue to build on the very solid platform we’ve now built with the amount of capital we’ve invested. And also I would like to highlight that we certainly continue to work on bio LPG projects, and we certainly continue to work on renewable dimethyl ether as other renewable solutions to the products we serve.

So overall, I think we can — you can expect and we certainly expect to continue to see some momentum in this area.

Michael Gaugler: All right. That’s all I have gentlemen. Thank you.

Roger Perreault: Thank you very much, Michael. Appreciate the questions.

Operator: At this time, I am showing no further questions in the queue. I would now like to turn the conference back to Roger Perreault, President and CEO for closing remarks.

Roger Perreault: Thank you, Michelle, and I’d like to thank everybody for joining us today and your continued interest in UGI. We look forward to our next earnings call. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.