UGI - Why UGI Stock Is Up Today
2023-08-31 16:23:32 ET
Energy transmission company UGI (NYSE: UGI) is seeking buyers for its liquefied petroleum gas (LGP) business and other assets. Investors are intrigued by the possibility, sending UGI shares up as much as 10% on Thursday.
UGI is a distributor and marketer of energy products in the U.S. and Europe, offering natural gas and electricity transmission and distribution, midstream services, and the distribution of propane and other gases. On Wednesday after markets closed, the company announced its board has initiated a process to evaluate potential strategic alternatives to try to "unlock and maximize shareholder value."
The board is working with bankers and lawyers to consider a range of options, with a focus on the LGP business. UGI said it hopes to reduce earnings volatility and strengthen its balance sheet via the review, though it offered no guarantees a corporate action would occur.
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Why UGI Stock Is Up Today