Power Distribution Company UGI Looks For Strategic Alternatives To Strengthen Business

Natural gas and electric power distribution company UGI Corporation UGI said its Board of Directors has initiated a process to evaluate potential strategic alternatives with the intent to unlock and maximize shareholder value.

The strategic review, focused on the LPG businesses, will consider a range of strategic, operational and financial alternatives. 

The goal of the initiative is to reduce UGI's earnings volatility and to strengthen its balance sheet. 

The company will also consider actions to optimize its cost structure and realign its capital allocation priorities.

UGI has engaged Goldman Sachs & Co. LLC and J.P. Morgan Securities, LLC as advisors in its review of strategic options.

UGI has not set a timeline for the completion of the review process and does not intend to disclose developments unless finalized.

Price Action: UGI shares traded higher by 7.40% at $24.83 premarket Thursday.