Sean O’Brien: Yes, we’re down what 97% from the original supply locations that we have.
Mario Longhi: 97% of the risk taken off the table.
Julien Dumoulin-Smith: Yes. Excellent, nice. Thanks for clarifying that. And then just a super quick on the other side of this business, if you think about that, you said more substantive cash flow profile to continue to address, deleveraging on the LPG side. Can you talk about how much cash flow you would expect, post interest expense to be able to delever this year, prospectively if you will. I think I heard a couple of comments that earlier, but I just want to try to clarify versus what we saw in the quarter here versus perspectives through the course of the year and being able to bring down principle?
Mario Longhi: Yes, and a couple of things to keep in mind, just to give you some data points, AmeriGas closed the quarter, used round numbers, Julien , I think we had $50 million, $60 million of cash on hand. So we did have some, AmeriGas is in a cash position. We expect that, I think what I’ve said in the past is we anticipate, if we can deliver the year we had in our heads, about $150 million of cash or we’ll give or take from directly out of AmeriGas, that’ll be used to delever. So, that’s on the 150 of debt, it’s going to come off the table. And then as we think about the additional delevering, I’ve been clear that, we may provide, we may target something, a number closer to, 350 million to 450 million of delevering in total.
Again, I’ll remind you on the positive, we’ve already taken 325 off. So there may be some additional support that continue to delever quicker. I think it’s important for the company to get AmeriGas below that 50 and to get AmeriGas into a level, get it to leverage it to a level that it can sustain, a warm winter, it can sustain a bump in the night. So that ought to give you a feel for the year, 150 or so directly from AmeriGas, delevering. And then we’re looking at another 150, it may be up to 300, 400 from corporate.
Julien Dumoulin-Smith: Thank you for all that clarity. Appreciate it. Good luck, guys. Speak to you soon.
Mario Longhi: Thanks Julien.
Sean O’Brien: Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from Sarah Akers with Wells Fargo. Your line is now open.
Sarah Akers: Hey, good morning.
Mario Longhi: Good morning, Sarah.
Sarah Akers: Just on AmeriGas, if I understand correctly, the equity cure won’t be available for this fiscal Q2. So do you anticipate another equity cure this quarter? And if so, any sense of the size just given winter weather?
Mario Longhi: Yes, I think you’re interpreting the first part right there, when you took, when we took that equity cure in Q2 of ’23, it stays into, you have it available for quarters and Q1 would have been of this year’s the last one. We have multiple, based on the agreements we have, we can take additional equity cures. Look, I think I’ve been clear, we’re trying to run this company without equity cures. I think that’s important as we go forward. The debt reduction is one element. And then, you heard Mario talk a lot about working on the operating model so that we actually see, the volumes and the EBITDA grow outside of just the debt. So we are doing everything we can. Good news, we have more equity cure available to us, but our goal is not to, is to do the best we can not to have to utilize it, but it kind of gives us some cushion, as we continue to work to improve the business.
Sarah Akers: Got it. And I know heading into the year, volumes at AmeriGas were expected to decline, but can you kind of quantify in Q1 the impact of the attrition? It’s obviously weather was a factor as well, but that attrition impact and how that compared to your original expectation was that in line or worse than the original plan?
Sean O’Brien: Yes, I can, I’ll do it in two ways. I’ll start with the year-over-year because I know that’s what everyone can see. So we highlighted 13% down, weather was 12% warmer than normal. So that had a meaningful impact, but then there was also a pretty large impact due to attrition. So that’s year-over-year. Now you’re asking, okay, what did you anticipate? Obviously when we talk about our guidance, it’s weather normal. So that’s 12, and weather I think was 6% warmer than normal. So, about half what it was versus last year, but still warmer. So some of the impact versus our expectations was driven by weather. We did have customer attrition baked into our forecast, Sarah, but what we saw in Q1, the levels of attrition were higher than what we had baked in.
So the teams working on that, but you did have weather that wouldn’t have been in our forecast and we had some of the attrition baked in. It was, Mario obviously spoke around our focus. We saw more attrition than what we would have budgeted.
Sarah Akers: Got it. And in terms of UGI level financing, are you still confident that the company can weather the AmeriGas issues and execute on that debt pay down without external equity at UGI?
