AmeriGas Partners Reports Another Record Quarter - Earnings Up 52%.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--April 25, 2001

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L. P. (NYSE:APU), reported net income for the Partnership's second quarter of fiscal 2001 of $1.67 per limited partner unit, a Partnership record for any quarter and 44% higher than the $1.16 per limited partner unit in the same period last year.

Net income for the quarter was $74,497,000, up 52% compared with $49,007,000 in the same period last year. Average limited partner units increased 5.5% over the prior year. For the three months ended March 2001, retail volumes sold were 287.9 million gallons, a 7.9% increase over the 266.8 million gallons sold in the prior-year period.

Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) increased more than 35% to a Partnership record of $113,083,000 in the fiscal 2001 quarter from $83,720,000 a year ago.

Nationally, weather was less than 1% warmer than normal in the recently-completed quarter and 16% colder than last year's comparable quarter, according to the National Oceanic and Atmospheric Administration.

Lon R. Greenberg, chairman of AmeriGas, said, "We are pleased to add these outstanding results to those of our record December quarter to report the highest EBITDA and net income per unit for the all-important heating season since the inception of the Partnership in early 1995. The earnings potential of AmeriGas has become apparent with the return of colder winter weather."

Eugene V. N. Bissell, chief executive officer of AmeriGas, added, "As in the December quarter, our fuel supply and pricing strategies achieved our objective of maintaining competitive prices during a period of volatile supply costs for propane and increased delivery expenses. With retail customer bills up over 50% compared to last year as a result of colder weather and higher product cost, we experienced some fuel switching and conservation in the March quarter. However, it was our employees' continued dedication to customer service and our extensive logistical network which proved invaluable during this very difficult period of tight supply and higher product cost."

Operating expenses rose 11%, reflecting higher vehicle fuel cost, higher delivery expense related to higher sales volumes, acquisitions and higher reserves for bad debts related to higher product cost partially offset by productivity enhancements attributable to business process improvement efforts.

Revenues for the quarter, which reflect the higher propane product costs and increased sales, were $557,452,000 versus $388,876,000 a year ago.

AmeriGas Partners is one of the nation's largest retail propane marketers, serving nearly one million customers. UGI Corporation (NYSE:UGI), through subsidiaries, owns 55% of the Partnership and individual unitholders own the remaining 45%.

Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com.

This press release may contain certain forward-looking statements which management believes to be reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties which are difficult to predict and many of which are beyond management's control. You should read the Partnership's 2000 Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, price volatility and availability of propane, and the capacity to transport propane to our market areas. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.