Boston, MA 05/09/2014 (wallstreetpr) – UGI Corp (NYSE:UGI) is a $5.4 billion holding company that through subsidiaries provides distribution, transportation, storage and marketing of energy products and services.
The company was among the energy-related companies that benefited from the colder than normal winter weather. However, besides weather impact, the company believes it can still deliver positive and grow results going forward. That is achievable through enhancing the capacity, efficiency and customer acquisition. As such, the company through its subsidiary UGI Energy Services expects to spend $80 million in two pipeline projects.
The company expects the two projects to start delivery in the fall of 2014 with the remaining works to complete in fall of 2015 as the company seeks to increase revenue while meeting customer needs. The two pipelines will support transportation of natural gas produced by Cabot Oil & Gas Corporation (NYSE:COG) in northeastern Pennsylvania.
New pipeline project coverage
The first project will be a new 9-mile long and 24-inch diameter pipeline that connects Manning Compressor Station, Wyoming Country, with Susquehanna County. The 24-inch diameter pipeline will run parallel to the 12-inch Auburn I pipeline. As such, the project seeks to expand the company’s Auburn Gathering System.
The other pipeline project is a 6-mile long and 12-inch diameter to transport natural gas to another UGI Corp (NYSE:UGI) subsidiary and utility UGI Penn Natural Gas Inc. The utility is in northeastern Pennsylvania.
Creating shareholder value
The robust oil and gas activities in North America provides all opportunities that the diversified energy companies can need in the market and UGI Corp (NYSE:UGI) believes it can make the most of these opportunities. 1Q2014 was a clear indicator that the company has the right combination of assets to benefit from the vibrant North America oil industry.
The company reported 28 percent jump in profit for the quarter, helped largely by the high demand for energy in the winter weather. As such, UGI Corp (NYSE:UGI), posted $222 million in net income or $1.90 per share. That compared with $174 million or $1.51 per share in the same period a year ago.
