<SEC-DOCUMENT>0001193125-16-469845.txt : 20160325
<SEC-HEADER>0001193125-16-469845.hdr.sgml : 20160325
<ACCEPTANCE-DATETIME>20160219145507
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ACCESSION NUMBER:		0001193125-16-469845
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160219

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UGI CORP /PA/
		CENTRAL INDEX KEY:			0000884614
		STANDARD INDUSTRIAL CLASSIFICATION:	GAS & OTHER SERVICES COMBINED [4932]
		IRS NUMBER:				232668356
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		460 N GULPH RD
		STREET 2:		P O BOX 858
		CITY:			KING OF PRUSSIA
		STATE:			PA
		ZIP:			19406
		BUSINESS PHONE:		6103371000

	MAIL ADDRESS:	
		STREET 1:		460 NORTH GULPH ROAD
		CITY:			KING OF PRUSSIA
		STATE:			PA
		ZIP:			19406

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NEW UGI CORP
		DATE OF NAME CHANGE:	19600201
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February&nbsp;19, 2016 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>VIA EDGAR </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">William H. Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Accounting Branch Chief </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Office of Consumer Products </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange
Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"><B>Re:</B></TD>
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<TD VALIGN="bottom"><B>UGI Corporation</B></TD></TR>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B>Form 10-K for Fiscal Year Ended September 30, 2015</B></TD></TR>
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<TD VALIGN="bottom"><B>Filed November 30, 2015</B></TD></TR>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B>File No. 1-11071</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Mr.&nbsp;Thompson: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This
letter is submitted by UGI Corporation (the &#147;Company&#148;) in response to your letter dated January&nbsp;21, 2016 relating to the above referenced filing by the Company. Set forth below in italics are the comments contained in the Staff&#146;s
letter, together with the Company&#146;s responses. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations, page 32 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><I></I>1.</TD>
<TD ALIGN="left" VALIGN="top"><I>We note during Fiscal 2015 one of the two major macroeconomic events impacting your businesses and results was the decline in worldwide commodity prices and you expect your results in Fiscal 2016 will be influenced
by commodity prices. We also note on page 6 you disclose &#147;retail propane industry volumes have been declining for several years and no or modest growth in total demand is foreseen in the next several years.&#148; Please tell us and in future
filings expand your disclosure within Management&#146;s Discussion and Analysis to provide more specific insight regarding the operational impact, uncertainties and possible impairments a continued decline in commodity prices and volumes may have on
your operations. </I></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>Further, with regards to your critical accounting policy on goodwill impairment please confirm to
us, if true, that no reporting units are at risk of failing step one of the goodwill impairment test under ASC 350-20-35-4 through 8. Otherwise, for reporting units with material goodwill that are at risk of failing step one of the goodwill
impairment test, disclose the following: the percentage by which fair value exceeded carrying value as of the date of the most recent test; a description of how </I></P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. William H. Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February 19, 2016 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>
the main valuation assumptions were determined; and a discussion of the degree of uncertainty associated with the main assumptions. The discussion regarding uncertainty should provide specifics
to the extent possible; and a description of potential events and/or changes in circumstances that could reasonably be expected to negatively affect the main assumptions. </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>Refer to Item&nbsp;303(a)(3)(ii) of Regulation S-K and Section V of Release 33-8350. </I></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Response: </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>As discussed below, we do not believe that
additional information is required in Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations (&#147;MD&amp;A&#148;) by Item&nbsp;303(a)(3)(ii) of Regulation S-K. The uncertainties relating to the cost of energy
and the volume of sales of propane are not uncertainties that are reasonably likely to have a material impact on total margin (defined as total revenues less total cost of sales), net income, liquidity, or goodwill. </B></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Impact of Commodity Prices </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company is a holding
company that, through subsidiaries and affiliates, distributes, stores, transports and markets energy products and related services. As more fully described below, because we are not a significant producer of energy products but are involved
primarily in the retail distribution and marketing of energy products that we purchase, in large part, from producers and wholesale suppliers, along with related services, we generally are not negatively impacted by significant fluctuations,
including declines, in energy commodity prices. Although changes in our revenues and cost of sales are influenced by changes in market prices for energy commodities, our gross margin and profitability are generally not significantly affected for the
reasons described below. Furthermore, as discussed below, declines in commodity energy prices do not generally indicate a triggering event that, by itself, results in an impairment of our long-lived assets. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Changes in wholesale energy commodity prices can impact each of our businesses differently. These different impacts are the result of differences in the types
of products or services that we sell and, in the case of our natural gas and electricity distribution utilities, the effects of regulatory practices. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Liquefied Petroleum Gas (&#147;LPG&#148;) Distribution and Energy Marketing </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our LPG distribution businesses are comprised of our AmeriGas Propane segment in the U.S. and our UGI International segments in Europe and China. Our Energy
Services segment, which is conducted by the Company&#146;s wholly owned subsidiary, UGI Energy Services, LLC (&#147;Energy Services&#148;), and provides energy marketing in the Mid-Atlantic and Northeast U.S., sells or distributes energy products
used in large part for heating purposes. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. William H. Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February 19, 2016 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">AmeriGas Propane&#146;s retail LPG business and our UGI International retail LPG businesses are
&#147;margin-based&#148; businesses in which total margin is dependent upon the excess of the selling price over LPG supply costs. LPG, as an energy commodity, is subject to price fluctuations in response to changes in supply or other market
conditions. For example, during the fiscal year ended September&nbsp;30, 2015 (&#147;Fiscal 2015&#148;), the wholesale commodity prices for propane as indicated by propane prices at major U.S. supply points such as Mont Belvieu, Texas, and Conway,
Kansas, were approximately 50% lower than such prices during the fiscal year ended September&nbsp;30, 2014 (&#147;Fiscal 2014&#148;). In Europe, wholesale LPG prices declined more than 40% in Fiscal 2015. A substantial portion of our LPG supply
contracts typically provide for pricing based upon index formulas using current prices established at a major storage point or posted prices at the time of delivery. As a result, our LPG supply costs generally decline when there are market declines
in wholesale LPG commodity prices. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">During periods of LPG commodity price increases, we generally seek to pass on such increases to our customers on a
timely basis. A portion of AmeriGas Propane&#146;s and UGI International&#146;s retail customers enter into fixed-price contracts. In order to manage market price risk associated with fixed-price contracts, AmeriGas Propane and our International LPG
businesses use derivative financial instruments and forward physical contracts, and may also adopt supply procurement and product cost risk management practices to reduce the effects of volatility in wholesale commodity prices on unit margins. A
substantial portion of our Energy Services energy marketing business generally involves the execution of fixed-price contracts with customers. In order to reduce market risk associated with its fixed-price contracts, Energy Services uses physical,
futures and other derivative contracts to economically hedge the future cost of energy associated with such contracts. As a result, increases or decreases in Energy Services&#146; commodity prices associated with fixed-price customers do not
significantly impact its energy marketing unit margin. However, lower commodity prices reduce working capital requirements and bad debt expense, which may modestly improve earnings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">During periods of declining LPG wholesale commodity costs, the unit margins of our domestic and International LPG marketing and distribution businesses
generally remain steady or increase slightly. Our customers benefit from declining commodity prices through lower selling prices. In addition, lower LPG selling prices dampen price-induced customer conservation and generally reduce our exposure to
customer credit risk and payment default. Additionally, the lower LPG selling prices reduce the amount of cash needed to fund investments in working capital, principally customer accounts receivable and inventory. As a result, lower wholesale LPG
commodity prices tend to have a beneficial impact on our results. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With respect to the impact of lower wholesale LPG commodity prices on possible
long-lived asset impairments at our domestic and international LPG distribution businesses, declining wholesale LPG commodity prices generally do not negatively impact cash flows associated with these long-lived assets. As previously mentioned, as
LPG commodity prices decline, our unit margins generally increase, which increases the cash flow associated with our LPG distribution businesses&#146; long-lived assets. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. William H. Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February 19, 2016 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Impact of AmeriGas Propane Industry Volume Trends </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As noted on pages 6-7 of the Company&#146;s Annual Report on Form 10-K for the fiscal year ended September&nbsp;30, 2015 (the &#147;Annual Report&#148;), under
the heading <I>&#147;Competition,&#148;</I> retail propane industry volumes have been declining for several years and no or modest growth in total demand is foreseen in the next several years. Among other things, this decline in demand is the result
of the impact of conservation and energy efficiency and technological advances as well as the expansion of natural gas into areas that previously did not have such access. As a result, as disclosed on page 7 of the Annual Report, AmeriGas Partners,
L.P.&#146;s (&#147;AmeriGas Partners&#148;) ability to grow in a no or low growth business environment is dependent upon the expansion of its National Accounts and AmeriGas Cylinder Exchange (&#147;ACE&#148;) programs, its ability to acquire and
successfully integrate other retail propane distributors as well as its ability to attract and retain customers. The expansion of our National Accounts and ACE programs has been effective in offsetting the impact of the decline in retail propane
industry volumes, and AmeriGas Partners has been successful in acquiring and integrating both small and large retail propane distribution companies, including the Heritage Propane acquisition on January&nbsp;12, 2012, and continues to pursue growth
through its acquisition program. As a result of these growth initiatives, the decline in industry total volumes has not had a significant impact on AmeriGas Partners&#146; profitability. Furthermore, as the factors that cause minimal or no growth
within the industry are generally long-term in nature, the impact on year-over-year results is not material to a year-to-year analysis and are not uncertainties requiring disclosure in UGI&#146;s MD&amp;A because they are not reasonably likely to
have a material impact on total margin, net income or liquidity during the next several years. Accordingly, we believe that it is more meaningful to describe such general long-term trends in the &#147;Business&#148; section of our Annual Report
(Item 1). </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Regulated Utilities </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The natural gas
(&#147;Gas Utility&#148;) and electric utility (&#147;Electric Utility&#148;) businesses of our subsidiary, UGI Utilities, Inc. (&#147;Utilities&#148;), are subject to regulation by the Pennsylvania Public Utility Commission (&#147;PUC&#148;) and,
with respect to its customers in Maryland, the Maryland Public Service Commission. Gas Utility&#146;s and Electric Utility&#146;s tariffs contain clauses that permit recovery of all prudently incurred purchased gas and power costs through the
application of purchased gas cost (&#147;PGC&#148;) and default service (&#147;DS&#148;) rates. As a result of the PGC and DS recovery mechanisms, increases or decreases in the cost of natural gas or electricity associated with customers who
purchase their natural gas or electricity from Gas Utility or Electric Utility have no direct effect on our operations or total margin. Similar to our domestic and international LPG businesses, our Gas Utility and Electric Utility customers benefit
from lower wholesale commodity prices through lower PGC and DS rates, and the lower rates dampen price-induced customer conservation, reduce our exposure to customer credit risk and payment default, and reduce the cash needed to fund investments in
working capital, principally customer accounts receivable and inventory. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. William H. Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February 19, 2016 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Midstream Assets </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our Midstream assets principally comprise natural gas gathering pipelines, natural gas and propane storage assets, electricity generation assets, and an
investment in natural gas production assets in the Marcellus Shale region of Pennsylvania. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our natural gas gathering assets are located in the Marcellus
Shale region of Pennsylvania. This region is proximate to major population centers in the Mid-Atlantic and Northeast U.S., where there is strong demand for natural gas. We have entered into contracts with natural gas producers to transport natural
gas through our natural gas gathering system and to connect with major interstate pipelines. Our contracts with these producers include fixed (&#147;demand&#148;) fees that are not dependent on volumes transported. Moreover, these contractual fees
are not based upon the market prices for natural gas. Accordingly, contractual revenues associated with these natural gas gathering pipelines are not directly affected by the amount of gas that is transported, nor declines in natural gas prices.
Although our investments in this natural gas gathering infrastructure are recoverable through fixed fee contracts with producers, continued declines in natural gas prices could eventually impact the financial condition of these producers, which
could result in payment defaults or bankruptcies of the producers. If this were to occur, it could impact the recoverability of these assets in the near term. However, the producers transporting on the gathering system have also dedicated all or a
portion of their production acreage to these assets. As a result, any and all gas produced from these wells is &#147;dedicated&#148; to be transported to the interstate market through Energy Services&#146; gathering system. We believe that this
acreage dedication, the favorable location of our natural gas gathering assets in the Marcellus Shale region of Pennsylvania, with their proximity and access to the strong demand from the Mid-Atlantic and Northeast population centers, and our fixed
fee contracts with producers make these assets valuable and impairment unlikely. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our natural gas and propane storage assets located in Pennsylvania
continue to benefit from continued strong demand for natural gas and peaking service from downstream natural gas distribution utilities. We do not foresee that a decline in natural gas prices would materially impact the storage fees we receive.
Furthermore, we believe that continued declines in natural gas commodity prices will increase the demand for natural gas storage service. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our electricity
generation assets located in Pennsylvania principally comprise our 5.97% (approximately 102 megawatt) ownership interest in the coal-fired Conemaugh generation station and our 100% ownership of the Hunlock Station, which operates on natural gas.
These facilities are low-cost electricity production facilities located in the PJM Interconnection. Our Hunlock Station&#146;s access to inexpensive Marcellus Shale natural gas feedstock as well as recent pollution mitigation expenditures at the
Conemaugh generation station and its easy access to low cost coal fuel make it likely that these facilities will continue to operate at a level that will recover our investments. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Based upon the discussion above, we do not believe that a continued decline in energy commodity prices is reasonably likely to have a material impact on our
results of operations or </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. William H. Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February 19, 2016 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">financial condition, or that such decline will result in a material impairment of our long-lived assets. In
our future MD&amp;A, we will continue to disclose the period-over-period impact of changes in wholesale propane commodity prices on revenues, cost of sales and margin by major business unit. If our assessment of the impact of decreasing energy
prices changes, we will consider whether disclosure in the MD&amp;A is required by Item&nbsp;303(a)(3)(ii). </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Goodwill </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">UGI tests for possible impairment of goodwill as of the end of each fiscal year and at other times throughout the year if an event occurs or circumstances
change that would indicate that the fair value of the reporting unit is more likely than not to have decreased below its carrying amount. In our most recent analysis as of September&nbsp;30, 2015, we determined that the fair values of each of our
reporting units with goodwill were substantially in excess of their carrying amounts. As of September&nbsp;30, 2015, the estimated fair values of each of our reporting units with goodwill exceeded the respective carrying amounts by more than 35% of
such carrying amounts. If, in the future, the fair value of a reporting unit with material goodwill is not substantially in excess of its carrying amount, we will provide appropriate disclosure in accordance with Item&nbsp;303(a)(3)(ii) of
Regulation S-K, Section V of the Commission&#146;s Guidance Regarding Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, SEC Release No.&nbsp;34-48960 and any other applicable rules and regulations and Staff
guidance. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. William H. Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February 19, 2016 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In connection with the response above, the Company acknowledges that </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">it is responsible for the adequacy and accuracy of the disclosure in the filing; </TD></TR></TABLE>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
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<TD ALIGN="left" VALIGN="top">staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and </TD></TR></TABLE>
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<TD ALIGN="left" VALIGN="top">it may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If you should have any questions, please do not hesitate to contact the undersigned at (610)&nbsp;337-1000, or Linda L. Griggs, of Morgan, Lewis&nbsp;&amp;
Bockius, LLP, at (202)&nbsp;739-5245. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Very truly yours, </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3"><B>UGI Corporation</B></TD></TR>
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<TD VALIGN="top">By:&nbsp;&nbsp;&nbsp;&nbsp;</TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Kirk R. Oliver</P></TD></TR>
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<TD VALIGN="bottom">Name: Kirk R. Oliver</TD></TR>
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<TD VALIGN="bottom">Title: Chief Financial Officer</TD></TR>
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<TD VALIGN="top" COLSPAN="3">cc: Linda L. Griggs</TD></TR>
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