VALLEY FORGE, Pa. - UGI Corporation (NYSE:UGI), currently valued at approximately $6 billion in market capitalization, has named Michael Sharp (OTC:SHCAY) as President of AmeriGas Propane, set to take the helm on December 30, 2024. Sharp's appointment follows his tenure at Talen Energy, LLC, where he served as Vice President of Asset Management since 2023. According to InvestingPro data, UGI has demonstrated strong momentum with a 29% price return over the past six months.
Bob Flexon, President & CEO of UGI Corporation, expressed confidence in Sharp's leadership abilities, citing his extensive experience in commodity management and operations. Flexon highlighted Sharp's track record in asset transformation and his commitment to safety and customer service.
Sharp, who has held senior roles at Virgin Islands Water & Power Authority, Dynegy, and Duke Energy (NYSE:DUK), acknowledged the challenges ahead in improving AmeriGas's operations and financial position. He emphasized his commitment to driving change and creating value for customers and employees.
AmeriGas Propane is the nation's largest retail propane distributor, serving over 1.1 million customers across all 50 states from approximately 1,360 locations. UGI Corporation, a distributor and marketer of energy products and services, offers a range of energy solutions in the U.S. and Europe, including natural gas transmission and distribution, electric generation and distribution, and propane distribution.
This leadership change comes as part of UGI's ongoing strategy to enhance its service offerings and maintain its position in the energy market. The information regarding Sharp's appointment is based on a press release statement from UGI Corporation.
In other recent news, UGI Corporation has been making significant strides in its financial performance and strategic initiatives. The company reported a record adjusted diluted earnings per share (EPS) of $3.06 for the fiscal year 2024, marking a 5-year compound annual growth rate (CAGR) of 6%. This achievement was bolstered by record earnings before interest and taxes (EBIT) across three of its business segments, attributed to increased margins and sustained cost savings.
UGI's commitment to its shareholders was demonstrated by the distribution of approximately $320 million as dividends. Jefferies, an investment firm, maintained a positive outlook on UGI, raising its price target from $28 to $33, expressing confidence in UGI's turnaround strategy. The company's plan includes initiatives such as bolstering its AmeriGas division, divesting international assets, and realizing potential upside in gas marketing.
UGI also made substantial investments in its natural gas businesses, including infrastructure, renewable natural gas (RNG) projects, and liquefied natural gas (LNG) facilities. Despite facing challenges with its AmeriGas segment, which saw a 10% decline in LPG volumes and a $119 million reduction in total margin, the company anticipates an adjusted diluted EPS for fiscal 2025 to range between $2.75 and $3.05. These recent developments highlight UGI's ongoing efforts to enhance its performance and shareholder value.
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