AmeriGas Partners L.P. Common Units (APU, Financial) filed Quarterly Report for the period ended 2009-12-31.
Amerigas Partners L.p. Common Units has a market cap of $2.28 billion; its shares were traded at around $40.03 with a P/E ratio of 20.1 and P/S ratio of 1. The dividend yield of Amerigas Partners L.p. Common Units stocks is 6.8%. Amerigas Partners L.p. Common Units had an annual average earning growth of 2.5% over the past 10 years. GuruFocus rated Amerigas Partners L.p. Common Units the business predictability rank of 4-star.
The Partnerships debt outstanding at December 31, 2009 totaled $890.9 million (including current maturities of long-term debt of $82.7 million) compared with total debt outstanding of $865.6 million (including current maturities of long-term debt of $82.2 million) at September 30, 2009. Total debt outstanding at December 31, 2009 includes long-term debt comprising $779.7 million of AmeriGas Partners Senior Notes, $80.0 million of AmeriGas OLP First Mortgage Notes and $7.2 million of other long-term debt. At December 31, 2009, there was $24 million of borrowings outstanding under AmeriGas OLPs credit agreements (as further described below). There were no such borrowings at September 30, 2009 and $146 million of credit agreement borrowings at December 31, 2008. The significantly higher credit agreement borrowings at December 31, 2008 reflect higher borrowings needed in the prior year to fund counterparty collateral deposits associated with derivative financial instruments used by the Partnership to manage market price risk associated with fixed sales price commitments.
AmeriGas OLPs short-term borrowing needs are seasonal and are typically greatest during the fall and winter heating-season months due to the need to fund higher levels of working capital. In order to meet its short-term cash needs, AmeriGas OLP has a $200 million credit agreement (Credit Agreement) which expires on October 15, 2011. AmeriGas OLP also has a $75 million unsecured revolving credit facility (2009 Supplemental Credit Agreement) with three banks. AmeriGas OLPs Credit Agreement consists of (1) a $125 million Revolving Credit Facility and (2) a $75 million Acquisition Facility. The Revolving Credit Facility may be used for working capital and general purposes of AmeriGas OLP. The Acquisition Facility provides AmeriGas OLP with the ability to borrow up to $75 million to finance the purchase of propane businesses or propane business assets or, to the extent it is not so used, for working capital and general purposes. The 2009 Supplemental Credit Agreement expires on July 1, 2010 and permits AmeriGas OLP to borrow up to $75 million for working capital and general purposes.
At December 31, 2009, there were $24 million of borrowings outstanding under the Credit Agreements and no amounts outstanding under the 2009 Supplement Credit Agreement which are classified as bank loans on the Condensed Consolidated Balance Sheets. Issued and outstanding letters of credit under the Revolving Credit Facility, which reduce the amount available for borrowings, totaled $36.1 million at December 31, 2009. The average daily and peak bank loan borrowings outstanding under the credit agreements during the 2009 three-month period were $13.2 million and $48.0 million, respectively. The average daily and peak bank loan borrowings outstanding under the credit agreements during the 2008 three-month period were $131.8 million and $184.5 million, respectively. As previously mentioned, the higher average and peak bank loan borrowings in the prior year three-month period resulted from the need to fund counterparty cash collateral obligations associated with derivative financial instruments used by the Partnership to manage price risk associated with fixed sales price commitments to customers. These collateral obligations resulted from the precipitous decline in propane commodity prices that occurred early in Fiscal 2009. At December 31, 2009, the Partnerships available borrowing capacity under the credit agreements was $214.9 million.
Cash flow used by operating activities was $3.4 million in the 2009 three-month period compared to $68.0 million in the 2008 three-month period. Cash flow from operating activities before changes in operating working capital was $113.3 million in the 2009 three-month period compared with $101.9 million in the prior-year period principally reflects the amount and timing of recognition of gains (losses) on settled derivative commodity contracts. Cash required to fund changes in operating working capital totaled $116.7 million in the 2009 three-month period compared with $169.9 million in the prior-year period. The decrease in cash required to fund operating working capital in the current-year period principally reflects the absence of $114.0 million of cash required to fund counterparty collateral requirements in the prior-year period and the timing and amount of cash payments for purchases of propane partially offset by greater cash required to fund accounts receivable and inventories.
Investing activities. Investing activity cash flow is principally affected by investments in property, plant and equipment, cash paid for acquisitions of businesses and proceeds from sales of assets. Cash flow used in investing activities was $29.5 million in the 2009 three-month period compared with $8.9 million in the prior-year period. We spent $26.7 million for property, plant and equipment (comprising $10.4 million of maintenance capital expenditures and $16.3 million of growth capital expenditures) in the 2009 three-month period compared with $19.1 million (comprising $8.6 million of maintenance capital expenditures and $10.5 million of growth capital expenditures) in the 2008 three-month period. The greater capital expenditures in the 2009 three-month period include expenditures associated with an ongoing system software replacement and accelerated opportunistic purchases of cylinders for our AmeriGas Cylinder Exchange program. In November 2008, the Partnership sold its California LPG storage facility for net cash proceeds of $42.4 million.
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Amerigas Partners L.p. Common Units has a market cap of $2.28 billion; its shares were traded at around $40.03 with a P/E ratio of 20.1 and P/S ratio of 1. The dividend yield of Amerigas Partners L.p. Common Units stocks is 6.8%. Amerigas Partners L.p. Common Units had an annual average earning growth of 2.5% over the past 10 years. GuruFocus rated Amerigas Partners L.p. Common Units the business predictability rank of 4-star.
Highlight of Business Operations:
Retail propane revenues declined $74.0 million during the 2009 three-month period reflecting a $49.4 million decrease due to lower average selling prices and a $24.6 million decrease as a result of the lower retail volumes sold. Wholesale propane revenues increased $9.7 million principally reflecting higher year-over-year wholesale selling prices and higher wholesale volumes sold. Average wholesale propane commodity prices at Mont Belvieu, Texas, one of the major supply points in the U.S., were approximately 36% higher in the 2009 three-month period compared to such prices in the 2008 three-month period. The higher average wholesale propane commodity prices in the current year reflect the effects of an increase in wholesale propane commodity prices during the current-year period and a precipitous decline in such prices during the 2008 three-month period. At December 31, 2009, wholesale propane commodity prices at Mont Belvieu were $1.32 a gallon compared with $0.62 a gallon at December 31, 2008. Other non-propane revenues were lower in the 2009 three-month period due in large part to lower fee, hauling and terminal revenues. Total cost of sales decreased $55.9 million to $389.6 million principally reflecting the effects of the lower propane product costs and lower volume sales.The Partnerships debt outstanding at December 31, 2009 totaled $890.9 million (including current maturities of long-term debt of $82.7 million) compared with total debt outstanding of $865.6 million (including current maturities of long-term debt of $82.2 million) at September 30, 2009. Total debt outstanding at December 31, 2009 includes long-term debt comprising $779.7 million of AmeriGas Partners Senior Notes, $80.0 million of AmeriGas OLP First Mortgage Notes and $7.2 million of other long-term debt. At December 31, 2009, there was $24 million of borrowings outstanding under AmeriGas OLPs credit agreements (as further described below). There were no such borrowings at September 30, 2009 and $146 million of credit agreement borrowings at December 31, 2008. The significantly higher credit agreement borrowings at December 31, 2008 reflect higher borrowings needed in the prior year to fund counterparty collateral deposits associated with derivative financial instruments used by the Partnership to manage market price risk associated with fixed sales price commitments.
AmeriGas OLPs short-term borrowing needs are seasonal and are typically greatest during the fall and winter heating-season months due to the need to fund higher levels of working capital. In order to meet its short-term cash needs, AmeriGas OLP has a $200 million credit agreement (Credit Agreement) which expires on October 15, 2011. AmeriGas OLP also has a $75 million unsecured revolving credit facility (2009 Supplemental Credit Agreement) with three banks. AmeriGas OLPs Credit Agreement consists of (1) a $125 million Revolving Credit Facility and (2) a $75 million Acquisition Facility. The Revolving Credit Facility may be used for working capital and general purposes of AmeriGas OLP. The Acquisition Facility provides AmeriGas OLP with the ability to borrow up to $75 million to finance the purchase of propane businesses or propane business assets or, to the extent it is not so used, for working capital and general purposes. The 2009 Supplemental Credit Agreement expires on July 1, 2010 and permits AmeriGas OLP to borrow up to $75 million for working capital and general purposes.
At December 31, 2009, there were $24 million of borrowings outstanding under the Credit Agreements and no amounts outstanding under the 2009 Supplement Credit Agreement which are classified as bank loans on the Condensed Consolidated Balance Sheets. Issued and outstanding letters of credit under the Revolving Credit Facility, which reduce the amount available for borrowings, totaled $36.1 million at December 31, 2009. The average daily and peak bank loan borrowings outstanding under the credit agreements during the 2009 three-month period were $13.2 million and $48.0 million, respectively. The average daily and peak bank loan borrowings outstanding under the credit agreements during the 2008 three-month period were $131.8 million and $184.5 million, respectively. As previously mentioned, the higher average and peak bank loan borrowings in the prior year three-month period resulted from the need to fund counterparty cash collateral obligations associated with derivative financial instruments used by the Partnership to manage price risk associated with fixed sales price commitments to customers. These collateral obligations resulted from the precipitous decline in propane commodity prices that occurred early in Fiscal 2009. At December 31, 2009, the Partnerships available borrowing capacity under the credit agreements was $214.9 million.
Cash flow used by operating activities was $3.4 million in the 2009 three-month period compared to $68.0 million in the 2008 three-month period. Cash flow from operating activities before changes in operating working capital was $113.3 million in the 2009 three-month period compared with $101.9 million in the prior-year period principally reflects the amount and timing of recognition of gains (losses) on settled derivative commodity contracts. Cash required to fund changes in operating working capital totaled $116.7 million in the 2009 three-month period compared with $169.9 million in the prior-year period. The decrease in cash required to fund operating working capital in the current-year period principally reflects the absence of $114.0 million of cash required to fund counterparty collateral requirements in the prior-year period and the timing and amount of cash payments for purchases of propane partially offset by greater cash required to fund accounts receivable and inventories.
Investing activities. Investing activity cash flow is principally affected by investments in property, plant and equipment, cash paid for acquisitions of businesses and proceeds from sales of assets. Cash flow used in investing activities was $29.5 million in the 2009 three-month period compared with $8.9 million in the prior-year period. We spent $26.7 million for property, plant and equipment (comprising $10.4 million of maintenance capital expenditures and $16.3 million of growth capital expenditures) in the 2009 three-month period compared with $19.1 million (comprising $8.6 million of maintenance capital expenditures and $10.5 million of growth capital expenditures) in the 2008 three-month period. The greater capital expenditures in the 2009 three-month period include expenditures associated with an ongoing system software replacement and accelerated opportunistic purchases of cylinders for our AmeriGas Cylinder Exchange program. In November 2008, the Partnership sold its California LPG storage facility for net cash proceeds of $42.4 million.
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