Investment Strategy Overview - The investment style is termed "Fundamental Options," which combines fundamental analysis with options trading [1] - The approach includes various strategies such as income-oriented investments, growth at a reasonable price, deep value, and dividend aristocrats [1] Investment Focus Areas - Income-oriented investments focus on Business Development Companies (BDCs) and Utilities [1] - Growth investments are primarily in the Technology sector, leveraging a background in Software Development [1] - Deep value investments are based on Discounted Cash Flow and other industry-specific valuation methods [1] - Dividend Aristocrats are also a key focus area [1] Options Trading Strategies - The company employs 20-25 different options strategies for various purposes, including hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Educational Initiatives - There is a passion for teaching, with experience in both formal and informal educational roles, including authoring a free local investing newsletter [1]

Core Insights - Eversource Energy has been streamlining its operations by moving away from offshore wind projects and divesting its water business to focus on its core electric and natural gas services [1] Group 1 - Eversource Energy is strengthening its core services by divesting non-core operations [1] - The company is shifting its focus from offshore wind to enhance its electric and natural gas offerings [1]

Customer Base and Service Areas - Eversource Energy's electric distribution segment serves approximately 1.30 million customers in Connecticut as of December 31, 2024[35]. - NSTAR Electric's distribution business serves approximately 1.58 million customers in Massachusetts as of December 31, 2024[46]. - NSTAR Gas distributed natural gas to approximately 315,000 customers, EGMA to about 332,000 customers, and Yankee Gas to around 254,000 customers in their respective service areas[75]. - Aquarion provides water services to approximately 248,000 customers across 73 towns and cities in Connecticut, Massachusetts, and New Hampshire[91]. - Approximately 91% of Aquarion's customers were based in Connecticut as of December 31, 2024[91]. Regulatory Environment - Eversource is subject to regulation by the Federal Energy Regulatory Commission (FERC) and various state regulatory bodies, impacting its operational and financial strategies[31]. - Aquarion's water utilities are regulated by PURA, DPU, and NHPUC, which oversee rates and service standards[92]. - NSTAR Electric's basic service rates are reset every six months, with costs reconciled annually, impacting approximately 26% of residential and 14% of small commercial customers[53]. - NSTAR Gas distribution rates were established in an October 2020 DPU-approved rate case, effective November 1, 2020, with a 10-year PBR plan through November 1, 2030[80]. - EGMA's distribution rates were established in a DPU-approved October 2020 rate settlement agreement, with rate base resets occurring on November 1, 2024, and November 1, 2027[81]. Financial Performance and Rate Structures - CL&P's retail rates include a supply component, local delivery component, and public benefits charges, with costs adjusted periodically and reconciled annually[38]. - CL&P supplied approximately 45% of its customer load at standard service rates while 55% migrated to competitive energy suppliers in 2024[44]. - NSTAR Electric achieved results at or above target for all service quality metrics in 2024, avoiding a potential SQ charge of up to 2.5% of annual revenues[52]. - PSNH's distribution rates were established in a 2020 NHPUC-approved rate case, with step increases reflecting plant additions in 2019, 2020, and 2021[61]. - PSNH filed for a temporary annual base distribution rate increase effective August 1, 2024, and a permanent rate increase proposed for August 1, 2025[62]. Renewable Energy and Sustainability Initiatives - Eversource aims to achieve carbon neutrality by 2030, with a 30% reduction in Scope 1 and 2 emissions from 2018 to 2023[119]. - Connecticut's Renewable Portfolio Standards (RPS) obligation for 2024 is set at 37.0%, increasing to 48.0% by 2030[104]. - Massachusetts' RPS and Clean Energy Standard requirements for 2024 are 62.3%, reaching 63.1% in 2025[105]. - New Hampshire's RPS obligation for 2024 is 24.3%, with a target of 25.2% in 2025[106]. - Eversource's Electric Sector Modernization Plan (ESMP) was approved in 2024, detailing steps for clean energy integration and resiliency initiatives[113]. Infrastructure and Technology - Eversource's electric distribution segments include electric distribution, electric transmission, natural gas distribution, and water distribution, representing substantially all of its total consolidated revenues[32]. - The estimated transmission rate base at the end of 2024 was approximately $10.8 billion, with $4.4 billion attributed to NSTAR Electric[68]. - Eversource has implemented a grid modernization plan to enhance electric distribution infrastructure and improve resiliency[116]. - Eversource is exploring alternative technologies like networked geothermal for heating and cooling to reduce carbon intensity[116]. Employee and Safety Metrics - As of December 31, 2024, Eversource Energy employed a total of 10,680 employees, with 48% being members of various labor unions[124]. - Eversource's DART safety performance was 0.76 in 2024, indicating days away, restricted or transferred per 100 workers[125]. - The company emphasizes merit-based hiring practices and employee engagement to foster a diverse and skilled workforce[126]. - Eversource's Board of Trustees oversees human capital management and employee engagement activities, receiving regular updates on progress[128]. Environmental and Risk Management - As of December 31, 2024, the recorded liability for environmental remediation costs is $128.0 million, covering 65 sites[109]. - Eversource's Enterprise Risk Management (ERM) program identifies and mitigates principal risks, integrating with compliance, auditing, and insurance functions[460]. - Eversource's investments in energy efficiency solutions and electric vehicle infrastructure aim to minimize climate-related impacts for customers[120]. - The company actively supports local, state, and federal emission reduction goals to address climate change while improving shareholder value[120]. Business Operations and Investments - Eversource is in the process of selling its Aquarion water distribution business, which serves customers in Connecticut, Massachusetts, and New Hampshire[34]. - Eversource's current offshore wind business consists of a noncontrolling tax equity investment in South Fork Wind after selling its interests in Revolution Wind and South Fork Wind projects in Q3 2024[33]. - NSTAR Electric operates 70 MW of solar power facilities, selling energy into the ISO-NE market, with proceeds credited to customers[47]. - NSTAR Electric does not own generation assets, purchasing energy supply from competitive sources, with contracts for basic service established twice per year[53].

Financial Data and Key Metrics Changes - Eversource Energy reported earnings per share (EPS) of $2.27 for 2024, compared to a GAAP loss of $1.26 per share in 2023, reflecting a significant turnaround [34] - Non-GAAP earnings were $4.57 per share in 2024, up from $4.34 per share in 2023, marking a year-over-year growth rate of 5.3% [34] - The company ended 2024 with over 5% growth in earnings and increased its first quarter 2025 dividend by 5.2% on an annualized basis [20] Business Line Data and Key Metrics Changes - Electric transmission earned $2.03 per share in 2024, up from $1.84 per share in 2023, driven by investments in service reliability [35] - Electric distribution earnings were $1.77 per share in 2024, slightly up from $1.74 per share in 2023, due to increased revenues from base distribution rate increases [36] - Natural gas distribution earned $0.81 per share in 2024, compared to $0.64 per share in 2023, attributed to higher base distribution rate increases [36] - Water distribution segment earned $0.12 per share in 2024, up from $0.09 per share in 2023, primarily due to lower depreciation expenses [37] Market Data and Key Metrics Changes - The company received approval for a $77 million revenue increase effective November 1, 2024, in Massachusetts, with additional increases planned [40] - In New Hampshire, a rate review filing requested a $182 million increase effective August 1, 2025, with an interim increase of $61 million approved [43] Company Strategy and Development Direction - Eversource is focused on enhancing operational efficiency, investing in regulated opportunities, and delivering value to shareholders and customers [62] - The company plans to increase its five-year capital investment plan by nearly 10%, primarily aimed at transmission investments to address aging infrastructure [21] - Eversource aims to maintain a strong focus on customer satisfaction and reliability while expanding its diverse energy initiatives [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a long-term earnings growth rate of 5% to 7%, despite headwinds in 2025 [60] - The company is committed to improving its balance sheet and expects significant improvement in cash flows from operations in 2025 [57] - Management highlighted the importance of regulatory relationships and constructive rate mechanisms to support future growth [26] Other Important Information - Eversource announced the sale of Aquarion Water for approximately $2.4 billion, which will help reduce debt and strengthen the balance sheet [32] - The company was recognized as one of America's most responsible companies by Newsweek for its commitments to environmental, social, and corporate governance [14] Q&A Session Summary Question: Support for PURA expansion in Connecticut - Management stated they are indifferent to whether PURA has three or five commissioners, emphasizing the need for a fair and transparent process [69] Question: FFO to debt target for 2025-2029 - Management confirmed that the focus remains on improving the FFO to debt ratio, aiming to maintain it well above the Moody's downgrade threshold of 13% [76] Question: Timing and methodology for equity financing - Management indicated that they plan to utilize the ATM program for future equity needs, allowing for controlled market entry [83] Question: Impact of gas line extension proposals in Massachusetts - Management noted that it is premature to discuss the implications of the DPU's proposal to end most gas line extensions, as they are still formulating their response [130] Question: Timeline for the lawsuit against PURA - Management stated there is no set timeline for the court's decision regarding the lawsuit filed for transparency from PURA [100] Question: Drivers for long-term growth rate - Management highlighted the recovery of deferred storm costs and constructive rate mechanisms as key drivers for achieving the 5% to 7% growth rate in the future [108]

Eversource Energy (ES) reported fourth-quarter 2024 adjusted earnings of $1.01 per share, which surpassed the Zacks Consensus Estimate of 99 cents by 2%. The bottom line also increased 6.3% from the year-ago figure of 95 cents.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total Revenues of ESRevenues of $2.97 billion beat the Zacks Consensus Estimate of $2.81 billion by 5.7%. Total revenues also increased 10.4% from the year-ago figure of $2.69 billion.Full-year 2024 revenues totale ...

Eversource Energy (ES) came out with quarterly earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.02%. A quarter ago, it was expected that this New England power provider would post earnings of $1.04 per share when it actually produced earnings of $1.13, delivering a surprise of 8.65%.Over the last four quart ...

Financial Performance - Eversource Energy reported full-year 2024 earnings of $811.7 million, or $2.27 per share, compared to a loss of $(442.2) million, or $(1.26) per share in 2023[2]. - Non-GAAP recurring earnings for full-year 2024 totaled $1,634.0 million, or $4.57 per share, an increase from $1,517.7 million, or $4.34 per share in 2023[2]. - Eversource Energy reported earnings per share (EPS) on a diluted basis, excluding losses from offshore wind investments and other non-recurring items[15]. Future Earnings Expectations - The company expects 2025 earnings to be between $4.67 per share and $4.82 per share, with a long-term growth rate of 5 to 7 percent through 2029[5]. Investment Plans - Eversource's five-year investment plan for 2025 to 2029 is $24.2 billion, a nearly 10 percent increase from the previous plan of $22.1 billion[5]. - Eversource expects to raise $1.2 billion of equity over the forecast period of 2025-2029, mainly in the latter half of the period[6]. Segment Performance - The electric transmission segment earned $724.6 million in 2024, up from $643.4 million in 2023, reflecting higher investment levels[7]. - The natural gas distribution segment earned $291.0 million in 2024, compared to $224.8 million in 2023, driven by base distribution rate increases[9]. - The water distribution segment earned $44.6 million in 2024, an increase from $33.1 million in 2023, primarily due to lower depreciation expenses[10]. Strategic Decisions - The company recorded an aggregate net after-tax loss of $524.0 million related to the sale of offshore wind investments in 2024[3]. - Eversource plans to divest Aquarion Water Company, expected to close by late 2025, to strengthen its balance sheet and focus on regulated utility businesses[4]. Non-GAAP Financial Measures - The company emphasizes the use of non-GAAP financial measures to provide a clearer picture of ongoing performance, excluding significant losses and transaction costs[15]. - Eversource Energy's management believes that the non-GAAP presentation offers a more meaningful representation of financial performance, aiding in the analysis of historical and future results[15]. Risk Factors - Forward-looking statements indicate potential risks including cyberattacks, changes in economic conditions, and disruptions in capital markets that could materially affect actual results[16]. - The company acknowledges uncertainties related to major strategic development projects and the impact of regulatory actions on operations[16]. - Eversource Energy's risk factors are detailed in reports filed with the SEC, which are regularly updated and available on their website[17]. - Management cautions against placing undue reliance on forward-looking statements, as they are subject to change and may not reflect future events[18].

Eversource Energy (ES) is scheduled to release fourth-quarter 2024 results on Feb. 11, after market close. The company delivered an earnings surprise of 8.7% in the last reported quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Key Factors That Might Have Impacted ES' Q4 PerformanceThe bottom line is expected to have benefited from the completed sale of its 50% interest in the 132-megawatt ...

Eversource Energy (ES) announced that its board of directors has increased dividends by 5.2%. Following the board's approval, the share price rose 2.1% from Jan. 29, 2025. The new quarterly dividend will be 75.25 cents per share compared with the previous quarter’s 71.5 cents. The new dividend will be payable on March 31, 2025, to stockholders of record as of March 4, 2025.The increased dividend rate resulted in an annualized dividend of $3.01 per share compared with the previous level of $2.86. The current ...

Eversource Energy (ES) announced that it has entered into a definitive agreement to sell Aquarion Water Company (Aquarion) to the Aquarion Water Authority, a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority.The total enterprise value of the deal is around $2.4 billion, subject to some closing adjustments. This includes around $1.6 billion in cash and $800 million in ...