KKR's $9B takeover bid and a locked-in PA rate increase drive UGI
KKR's $9B takeover bid at a 21% premium KKR offered about $9 billion, or $42.50 a share, for UGI — roughly 21% above its $35.09 close. A takeover bid usually pulls the stock toward the offer price, because buyers must pay a premium to win control. The deal is unconfirmed, so the gain could vanish if talks fail.
The takeover bid is the single biggest force moving UGI's price this period.
Pennsylvania approves phased $65M gas rate increase Pennsylvania regulators approved a $65 million gas rate increase for UGI Utilities, phased in with $40 million from October 2026 and $25 million from October 2027. This locks in higher revenue and clearer earnings visibility, though a ban on new rate filings until 2029 limits future pricing flexibility.
The rate approval is a concrete, lasting earnings driver that supports UGI's value independent of the takeover rumor.
Weak Q3 results: wider loss and AmeriGas struggles UGI reported a fiscal third-quarter adjusted loss of 20 cents a share, worse than last year's 1-cent loss, as warm weather and customer losses at AmeriGas cut profit. AmeriGas lost $53 million and retail gallons fell 10%. Management still reaffirmed full-year guidance of $2.75–$2.90.
The weak quarter is the main counterweight to the takeover and rate news, showing the underlying business is still under pressure.