AmeriGas Partners Reports Lower First Quarter Results Due To Warmer Winter Weather.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--Jan. 30, 2002

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported income for the Partnership's first quarter of fiscal 2002 of $18,397,000, or $0.38 per limited partner unit, compared to $36,400,000, or $0.82 per limited partner unit, in the same period last year, excluding the beneficial cumulative effect of accounting changes adopted in fiscal 2001.

For the three months ended December 2001, retail volumes sold were 265.6 million gallons versus 257.0 million gallons sold in the prior-year period on weather that was 15% warmer than normal and 25% warmer than the prior-year period according to the National Oceanic and Atmospheric Administration.

Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) were $58,166,000 in the fiscal 2002 quarter compared to $75,144,000 a year ago. The results for the quarter reflect the addition of the Columbia Propane operations acquired in August 2001, the extremely warm weather and the slow economy.

Lon R. Greenberg, chairman of AmeriGas, said, "Nationally, we experienced one of the warmest December quarters on record. However, although we cannot control the weather or the level of overall economic activity, we continue to manage those things we can influence, such as growing our customer base and improving productivity."

Eugene V. N. Bissell, chief executive officer of AmeriGas, added, "During the quarter, we continued to integrate successfully the Columbia Propane business with our existing AmeriGas operations. I want to congratulate all of our employees for accomplishing the first phase of our blending of the two businesses in the face of such record warm weather."

Revenues for the quarter were $371,385,000 versus $432,468,000 a year ago, reflecting lower propane product costs offset partially by growth from the acquisition of Columbia Propane. Operating expenses rose during the quarter reflecting the addition of Columbia Propane as well as lower operating expenses that are variable with volume delivered.

As previously reported, AmeriGas Partners adopted accounting principle SFAS 142 effective October 1, 2001 resulting in the elimination of amortization of goodwill.

Although there is no impact on cash flow, amortization expense for the quarter ended December 2000 would have been $5,948,000 lower and net income $5,888,000, or $0.14 per limited partner unit, higher if SFAS 142 had been adopted in the prior year.

During the quarter ended December 31, 2001 AmeriGas Partners issued 2,193,047 new common units, as previously reported. In addition, the partnership issued 585,000 new common units in January 2002 pursuant to the partial exercise by the underwriters of the over-allotment option contained in the December 2001 unit public offering. The remainder of the over-allotment option has expired.

AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from approximately 700 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 51% of the Partnership and individual unitholders own the remaining 49%.

This press release contains 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 that are difficult to predict and many of which are beyond management's control. You should read the Partnership's 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, the capacity to transport propane to our market areas and regional economic conditions. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.

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