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UGI Goes All-In On Natural Gas — Can Portfolio Simplification Pay Off?

UGI Corporation reported its fiscal 2026 second quarter results reflecting a continuation of its strategic focus on natural gas, portfolio optimization, and operational improvements across its segments. The company’s natural gas businesses remained the cornerstone of its portfolio, supported by robust customer demand and operational execution. Noteworthy developments include a strategic partnership with Prime Data Centers to develop natural gas infrastructure in Pennsylvania, which is expected to enhance midstream growth opportunities, alongside a successful open season for the Auburn pipeline expansion pending regulatory approval. UGI International demonstrated stable financial performance, with a 15% return on capital employed and over $800 million in free cash flow generated in the past three years. Despite an 8% reduction in retail LPG volumes, largely due to divestitures and warmer weather, effective margin management and cost control maintained profitability.