AmeriGas Partners Reports Second Quarter Results.

Business Editors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--May 1, 2002

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L. P. (NYSE: APU), reported income for the Partnership's second quarter of fiscal 2002 of $81,989,000, or $1.64 per limited partner unit, compared to $74,497,000, or $1.67 per limited partner unit, in the same period last year.

Average limited partner units outstanding increased 11.5% over the prior year.

For the three months ended March 31, 2002, retail volumes sold rose 20.3% to 346.2 million gallons versus 287.9 million gallons sold in the prior-year period on weather that was 8.5% warmer than normal and 7.7% 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 $121,132,000 in the fiscal 2002 second quarter compared to $113,083,000 a year ago.

The results for the period reflect the beneficial effects of the Columbia Propane operations acquired in August 2001 partially offset by the effects of warmer winter weather, the slow economy and a reduction in unit margins from the prior year's high levels.

Lon R. Greenberg, chairman of AmeriGas, said, "Following a record warm January and early February, the weather gradually improved throughout the quarter. AmeriGas did an excellent job of managing its operating expenses and margins while continuing to integrate effectively the operations of Columbia Propane."

Eugene V. N. Bissell, chief executive officer of AmeriGas, added, "Our results for the quarter are directly attributable to the extraordinary efforts made by our employees to reduce expenses in the face of unusually warm weather without affecting our high standard of customer service and safety. We are particularly pleased with the results of the first phase of the integration of the Columbia Propane operations. Although there is much more to be accomplished, our employees have done an outstanding job blending nearly 80 locations to reduce operating expenses without affecting quality customer service. We expect to complete the consolidation of additional locations this summer to improve productivity."

Revenues for the quarter were $460,122,000 versus $557,452,000 a year ago, reflecting lower propane product costs offset partially by growth from the acquisition of Columbia Propane.

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 March 31, 2001 would have been $5,956,000 lower and net income $5,896,000, or $0.13 per limited partner unit, higher if SFAS 142 had been adopted in the prior year.

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.

               AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
                          REPORT OF EARNINGS
      (Thousands, except per unit and where otherwise indicated)
                              (Unaudited)


           Three Months Ended Six Months Ended   Twelve Months Ended
               March 31,          March 31,          March 31,
            ----------------- ----------------- ---------------------
              2002     2001     2002     2001      2002       2001
            -------- -------- -------- -------- ---------- ----------

Revenues:
 Propane    $432,986 $534,643 $772,134 $940,003 $1,155,065 $1,326,927
 Other        27,136   22,809   59,373   49,917    104,886     93,125
            -------- -------- -------- -------- ---------- ----------
             460,122  557,452  831,507  989,920  1,259,951  1,420,052
            -------- -------- -------- -------- ---------- ----------

Costs and expenses:
 Cost of
  sales -
  propane   (211,231)(334,743)(394,118)(588,295)  (603,989)  (824,550)
 Cost of
  sales -
  other      (10,122)  (8,682) (23,670) (19,905)   (41,574)   (37,877)
 Operating
  and
  admini-
   strative
  expenses  (119,629)(102,203)(235,497)(195,975)  (419,515)  (357,159)
 Other
  income,
  net          1,992    1,259    1,076    2,482      4,748      7,638
            -------- -------- -------- -------- ---------- ----------
EBITDA(a)    121,132  113,083  179,298  188,227    199,621    208,104
 Deprec-
  iation     (15,372) (11,781) (30,441) (23,477)   (55,132)   (44,868)
 Amortiza-
  tion        (1,116)  (6,622)  (2,233) (13,229)   (15,596)   (26,473)
            -------- -------- -------- -------- ---------- ----------
Operating
 income      104,644   94,680  146,624  151,521    128,893    136,763
Interest
 expense     (22,011) (19,855) (44,757) (39,844)   (85,309)   (78,593)
            -------- -------- -------- -------- ---------- ----------
Income
 before
 income
 taxes        82,633   74,825  101,867  111,677     43,584     58,170
Income tax
 (expense)
 benefit         322      460     (216)     405       (294)       415
Minority
 interests      (966)    (788)  (1,265)  (1,185)      (786)      (698)
            -------- -------- -------- -------- ---------- ----------
Income
 before
 accounting
 changes      81,989   74,497  100,386  110,897     42,504     57,887
Cumulative
 effect of
 accounting
 changes           -        -        -   12,494          -     12,494
            -------- -------- -------- -------- ---------- ----------
Net
 income(b)  $ 81,989 $ 74,497 $100,386 $123,391 $   42,504 $   70,381
            ======== ======== ======== ======== ========== ==========
General
 partner's
 interest in
 net income $    820 $    745 $  1,004 $  1,234 $      425 $      704
            ======== ======== ======== ======== ========== ==========
Limited
 partners'
 interest
 in net
 income     $ 81,169 $ 73,752 $ 99,382 $122,157 $   42,079 $   69,677
            ======== ======== ======== ======== ========== ==========
Net income
 per limited
 partner
 unit - basic
 and diluted:
  Income
   before
   account-
    ing
   changes  $   1.64 $   1.67 $   2.05 $   2.49 $     0.90 $     1.33
  Cumulative
   effect of
   account-
    ing
   changes         -        -        -     0.28          -       0.29
            -------- -------- -------- -------- ---------- ----------
  Net
  income(b) $   1.64 $   1.67 $   2.05 $   2.77 $     0.90 $     1.62
            ======== ======== ======== ======== ========== ==========
Average
 limited
 partner
 units
 outstanding:
  Basic       49,385   44,295   48,385   44,076     46,600     43,020
            ======== ======== ======== ======== ========== ==========
  Diluted     49,493   44,295   48,476   44,076     46,645     43,020
            ======== ======== ======== ======== ========== ==========


SUPPLEMENTAL INFORMATION:

 Retail
  gallons
  sold
 (millions)    346.2    287.9    611.8    544.9      887.7      815.6
 Distribut-
  able
  cash flow:
   EBITDA(a)$121,132 $113,083 $179,298 $188,227 $  199,621 $  208,104
   Cash
    interest
    exp-
    ense(c)  (22,371) (20,385) (45,327) (40,882)   (86,440)   (80,595)
   Maintenance
    capital
    expendi-
    tures     (5,406)  (4,923) (11,947)  (9,370)   (20,340)   (16,946)
            -------- -------- -------- -------- ---------- ----------
   Distribut-
    able
    cash
    flow(d) $ 93,355 $ 87,775 $122,024 $137,975 $   92,841 $  110,563
            ======== ======== ======== ======== ========== ==========

(a) Earnings before interest expense, income taxes, depreciation and
    amortization, minority interests and cumulative effect of
    accounting changes. EBITDA should not be considered as an
    alternative to net income (as an indicator of operating
    performance) or as an alternative to cash flow (as a measure of
    liquidity or ability to service debt obligations) and is not a
    measure of performance or financial condition under accounting
    principles generally accepted in the United States. EBITDA is
    included to provide additional information for evaluating the
    Partnership's ability to declare and pay the Minimum Quarterly
    Distribution. The Partnership's definition of EBITDA may be
    different from that used by other companies.

(b) SFAS No. 142, "Goodwill and Other Intangible Assets," was adopted
    effective October 1, 2001. Net income and net income per limited
    partner unit adjusted to reflect the impact of SFAS No. 142 as if
    it had been adopted at the beginning of the periods presented are
    as follows: three months ended March 31, 2001 - $80,393 and $1.80;
    six months ended March 31, 2001 - $135,175 and $3.04; twelve
    months ended March 31, 2002 - $54,290 and $1.15; and twelve months
    ended March 31, 2001 - $93,922 and $2.16, respectively.

(c) Interest expense adjusted for noncash items.

(d) Distributable cash flow is not a measure of performance or
    financial condition under accounting principles generally accepted
    in the United States.