UGI – Markets have muted expectations for UGI, but management is confident about their operating performance, capital return strategy, and their AmeriGas acquisition

• UGI Corporation (UGI:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 19.6x Uniform P/E. However, even at these levels, markets are pricing in muted expectations for the firm, while management is confident about their operating performance, capital return strategy, and the AmeriGas acquisition
• Specifically, management is confident in their ability to increase their performance through the second half of the year and to increase their dividend following the closing of the AmeriGas acquisition. Additionally, they are confident in the significance of their proposed merger.