AmeriGas to sell Hawaii operations to Isle Gas

VALLEY FORGE, Pa. - AmeriGas Propane, L.P., the largest retail propane distributor in the United States and a subsidiary of UGI Corporation (NYSE: UGI), which boasts a "GREAT" financial health score according to InvestingPro, announced Thursday it has reached a definitive agreement to sell its Hawaii assets to Isle Gas, a subsidiary of AMF Hawaii Investment Holdings, LLC managed by Argo Infrastructure Partners.

The transaction includes approximately 750,000 gallons of propane storage facilities and multiple delivery fleet vehicles used to serve customers throughout Hawaii. AmeriGas plans to use the proceeds to reduce company debt, which currently stands at $7 billion, according to a company press release and recent financial data.

"Exiting the Hawaii operations allows us to concentrate our resources and supply infrastructure on markets where we can achieve superior operational results," said Mike Sharp, President of AmeriGas.

The sale is expected to close in the fourth quarter of fiscal 2025, subject to customary closing conditions. Cetane Associates served as exclusive financial advisor to AmeriGas for the transaction.

AmeriGas, a wholly owned subsidiary of UGI Corporation (NYSE: UGI), operates in all 50 states with approximately 1,360 locations. The company reported selling over 820 million gallons of propane annually to more than 1.1 million customers as of September 30, 2024. UGI has maintained dividend payments for 55 consecutive years and currently offers a 4.1% dividend yield. InvestingPro analysis reveals 8 additional key insights about UGI’s financial strength and market position, available to subscribers.

The divestiture represents part of AmeriGas’s strategy to focus on markets where it believes it can achieve better operational and financial performance through strategic portfolio management.

Financial terms of the transaction were not disclosed in the announcement.

In other recent news, UGI Corporation reported strong earnings for Q2 2025, with earnings per share (EPS) of $2.21, exceeding analysts’ expectations of $1.96. Despite a revenue shortfall, with reported revenue at $2.67 billion against a forecast of $3.26 billion, the company increased its fiscal 2025 EPS guidance to a range of $3.00 to $3.15. UGI’s strategic initiatives, particularly in expanding its natural gas business, have contributed to this positive outlook. The company has also demonstrated financial health through strong free cash flow and a reduced net debt to EBITDA ratio. In addition, UGI has been working on operational improvements at AmeriGas, which have begun to show results. The company continues to focus on strategic investments, particularly in natural gas infrastructure. These developments have been well-received by investors, reflecting confidence in UGI’s growth trajectory.

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