UGI delivers natural gas to about 694,000 customers and electricity to about 62,900 customers in Pennsylvania. It also sells propane and other liquefied petroleum gases to homes, businesses, farms and vehicle fleets in the U.S. and abroad, including through its AmeriGas brand. On top of that, it runs pipelines, gas storage facilities and energy marketing services.

What is UGI's fair value?

On an owner-earnings DCF, UGI's most-likely fair value is about $25, versus a recent price near $37. A margin-of-safety estimate, not a price target. Analysis, not advice.

Utilities · Utilities - Regulated Gas · UGI

What UGI Does & How It Makes Money (UGI)

Updated October 2026 · reflects UGI's latest reported financials

Pennsylvania gas and electric utility plus global propane distributor. UGI earns regulated returns from delivering natural gas and electricity in Pennsylvania, and earns margins on each gallon of propane and LPG it sells.

UGI's story, moat and numbers — in a 3-minute visual book.

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How UGI makes money

UGI earns regulated returns from delivering natural gas and electricity in Pennsylvania, and earns margins on each gallon of propane and LPG it sells. It also collects fees for pipelines, gathering, storage and logistics, and makes money on retail energy marketing.

What UGI does

UGI Corporation, founded in 1882 and based in King of Prussia, Pennsylvania, is a diversified energy distributor with four segments: Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane. The Utilities segment serves about 694,000 natural gas customers across roughly 12,700 miles of mains in eastern and central Pennsylvania, plus about 62,900 electric customers in the northeast of the state. On the propane side, AmeriGas and UGI International together distribute about 801 million gallons of propane and other LPG to residential, commercial, industrial, agricultural, wholesale and motor-fuel customers, and provide logistics and storage to other distributors. Midstream & Marketing develops and operates pipelines, gathering systems and gas storage, manages pipeline and storage contracts, and sells natural gas, liquid fuels and electricity to about 10,800 retail customers. The company also owns electric generation, LNG and propane-air facilities, and rail transshipment terminals.

Products & services

Regulated natural gas distribution (Pennsylvania)
Electric distribution service (northeastern Pennsylvania)
AmeriGas propane
UGI International LPG distribution
Midstream pipelines, gathering and gas storage
Retail natural gas, liquid fuels and electricity marketing

What is UGI worth?

On an owner-earnings DCF, UGI's most-likely value is about $25 versus a recent price near $37 (33% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $37

Fair value (most likely)

$25

Range

$21–$30

No-growth floor

$18

Price

~$37

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

⚠ High leverage — net debt is 12.9× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

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