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. 

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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.