AmeriGas Partners Reports Second Quarter Earnings.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--April 26, 2000

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported that the Partnership's net income for the second quarter of fiscal 2000 was $49,007,000 or $1.16 per limited partner unit, compared with $55,391,000 or $1.31 per unit earned in the same period last year. Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) was $83,720,000 for the quarter versus $88,690,000 during the second quarter of fiscal 1999. For the six months ended March 31, 2000, net income was $68,206,000 or $1.61 per limited partner unit versus $73,046,000 or $1.73 per limited partner unit during the same period last year. EBITDA for the six month period was $137,711,000 compared with $139,060,000 a year ago.

Lon R. Greenberg, AmeriGas chairman and chief executive officer, said "We are extremely pleased with our results so far this year in light of the challenges we faced. Despite the warmest winter in recorded history and higher propane product costs, our year-to-date EBITDA was virtually unchanged from last year, reflecting the positive impact of our strategic investments to grow the customer base, expand our sources of non-propane income and improve productivity." For the six months ended March, retail volumes declined less than one percent to 500.5 million gallons versus 505.5 million gallons sold during the prior-year period on weather that was 4% warmer than last year and nearly 15% warmer than normal. For the quarter, retail volumes totaled 266.8 million gallons, compared to 284.8 million gallons last year. Based on information provided by the National Oceanographic and Atmospheric Administration, weather for the quarter was 5% warmer than the same period a year ago and more than 15% warmer than normal.

Revenues for the quarter, which reflect higher propane product costs, were $388,876,000 versus $304,925,000 a year ago. Similarly, six month revenues increased to $689,924,000 from $542,709,000 in 1999. Greenberg stated, "Our fuel supply and propane pricing strategies allowed us to maintain competitive prices and manage unit margins effectively during a period of increasing supply costs for propane. I congratulate all of our employees for their commitment to customer service in a difficult product cost environment."

Operating expenses were up modestly for the quarter and year-to-date, principally due to continued growth initiatives, business process improvement efforts and higher vehicle fuel expense. "We continue to focus on exploiting our national footprint through expansion of our PPX(R) barbecue cylinder exchange program, acquisitions of profitable retailers and expansion of our national accounts sales effort," explained Greenberg. AmeriGas is the second largest participant in the rapidly growing barbecue cylinder exchange customer segment with over 7,000 locations nationwide and recently announced the acquisition of several retailers, including Mitchell Butane of Fort Worth, Texas.

On April 24, AmeriGas announced the payment of the regular quarterly distribution of 55 cents per unit on all common and subordinated Partnership units on May 18 to holders of record May 10. As previously reported, 9.9 million subordinated units of the Partnership were eligible to convert to common units as of March 31, 2000 provided certain financial tests were satisfied. Because the Partnership did not meet those financial tests, the subordinated units will not convert as of March 31, 2000. The possibility is remote that the Partnership will satisfy the financial tests for conversion of the subordinated units any earlier than the quarter ending March 31, 2002. All of the subordinated units are held by affiliates of UGI Corporation.

AmeriGas Partners is one of the nation's largest retail propane marketers, operating from approximately 600 district locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 58% of the Partnership and individual unitholders own the remaining 42%.

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 1999 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.

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