Group 1 - The core objective of the investment strategy is to generate a 7%+ income yield by investing in energy stocks while minimizing the risk of principal loss [1] - The investment group focuses on income generation through energy stocks and closed-end funds (CEFs), while also managing risk through options [1] - The analysis includes both micro and macro perspectives on domestic and international energy companies [1]

HAMPTON, N.H., April 01, 2025 (GLOBE NEWSWIRE) -- Unitil Corporation (NYSE: UTL) (unitil.com) today announced that it has entered into a definitive agreement to acquire Maine Natural Gas Company ("Maine Natural") from Avangrid Enterprises, Inc., for $86.0 million on a debt-free basis, subject to adjustment for closing working capital and transaction expenses. Upon closing of the transaction, which is expected to occur by the end of 2025, Maine Natural will become a wholly owned subsidiary of Unitil. The tra ...

Financial Data and Key Metrics Changes - Adjusted earnings for fiscal year 2024 were $47.8 million or $2.97 per share, an increase of $0.15 per share or 5.3% over 2023 [10][62] - Consolidated return on equity was 9.4%, reflecting constructive regulatory outcomes and cost management focus [11][50] - Operating and maintenance expenses increased by $2 million or 2.6%, with a notable increase in depreciation and amortization of $8.7 million [26][68] Business Line Data and Key Metrics Changes - Electric adjusted gross margin was $107.3 million, an increase of $3.2 million compared to 2023, supported by higher distribution rates and customer growth [23][64] - Gas adjusted gross margin was $166.9 million, an increase of $12.4 million compared to 2023, with approximately 730 new gas customers added [25][65] Market Data and Key Metrics Changes - Approximately 60% of the company's gas customers were under decoupled rates by the end of 2024, which supported gas adjusted gross margin by approximately $0.28 per share [25][65] - The company added approximately 990 electric customers compared to 2023 [24][64] Company Strategy and Development Direction - The company completed the acquisition of Bangor Natural Gas, viewing it as complementary to existing operations and expected to be earnings accretive in the long run [11][50] - A five-year investment plan through 2029 totals approximately $980 million, which is 46% higher than the prior five years, aimed at growing the rate base [31][71] Management Comments on Operating Environment and Future Outlook - Management reaffirmed guidance for long-term earnings growth, dividend growth, and rate base growth, with adjusted earnings guidance for 2025 expected to be in the range of $3.01 to $3.17 per share [12][29] - The company is well-positioned to continue success and deliver on commitments to customers, communities, and shareholders [39][80] Other Important Information - The board of directors approved a quarterly dividend increase of $0.025 per share, bringing the annual dividend to $1.80 per share, a 5.9% increase from 2024 [37][78] - The company amended its revolving credit facility to increase the borrowing limit from $200 million to $275 million, extending the maturity to September 2028 [76][77] Q&A Session Summary Question: Can you walk through the strategy for the distribution rate case at UES and the customer bill impact? - Management indicated that customer billing impacts will not be known until the case is filed, expected in the second quarter of 2025 [85][87] Question: Regarding the five-year capital plan, how should equity issuance timing be considered? - Management stated that while 13% of the capital plan will come from equity, there are no immediate plans for equity issuance [89][90]

Unitil (UTL) Q4 2024 Earnings Call February 11, 2025 10:00 AM ET Company Participants Christopher Goulding - Vice President of Finance and RegulatoryThomas Meissner - Chairman & CEODaniel Hurstak - Senior VP, CFO & Treasurer Conference Call Participants None - Analyst Operator Good day and thank you for standing by. Welcome to the Fourth Quarter twenty twenty four Unitope Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a que ...

Unitil (UTL) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.11%. A quarter ago, it was expected that this utility would post earnings of $0.01 per share when it actually produced earnings of $0.02, delivering a surprise of 100%.Over the last four quarters, the company has surpassed ...

Revenue and Operations - Unitil Corporation serves approximately 198,500 customers across New Hampshire, Massachusetts, and Maine, with a total operating revenue of $494.8 million in 2024[16][17]. - Revenue from electric utility operations was $248.3 million in 2024, accounting for about 50% of total operating revenue, with an Electric Adjusted Gross Margin of $107.3 million[21][25]. - Natural gas operations generated $246.5 million in revenue in 2024, also representing about 50% of total operating revenue, with a Gas Adjusted Gross Margin of $166.9 million[25][26]. - Unitil Energy's electric operating revenue was $164.7 million in 2024, with approximately 57% from residential sales and 43% from commercial and industrial sales[23]. - Fitchburg's electric operating revenue was $83.6 million in 2024, with approximately 58% from residential sales and 42% from commercial and industrial sales[24]. - Northern Utilities' gas operating revenue was $188.7 million in 2024, with approximately 38% from residential firm sales and 62% from commercial and industrial firm sales[27]. - Fitchburg's gas operating revenue was $48.0 million in 2024, with approximately 57% from residential firm sales and 43% from commercial and industrial firm sales[28]. - Granite State, the interstate natural gas transmission pipeline, had operating revenue of $9.8 million in 2024[29]. - Unitil's total revenue for 2024 was $494.8 million, which includes revenue to recover the approved cost of purchased electricity and natural gas[136]. - Total Operating Revenue for 2024 was $494.8 million, a decrease of $62.3 million or 11.2% compared to 2023[150]. - Electric Operating Revenue decreased by $58.2 million or 19.0% in 2024, totaling $248.3 million, while Gas Operating Revenue decreased by $4.1 million or 1.6%, totaling $246.5 million[163][170]. Financial Performance - Adjusted Net Income for 2024 was $47.8 million, or $2.97 per share, compared to $45.2 million, or $2.82 per share in 2023[148]. - The Company's current effective annualized dividend is $1.80 per share of common stock, payable quarterly[77]. - The Company reported a total dividend of $1.70 per common share for the year ended December 31, 2024, compared to $1.62 in 2023, reflecting a year-over-year increase of 4.94%[124]. - The Company had approximately $105.8 million in short-term debt outstanding under its revolving credit facility as of December 31, 2024[70]. - The Company agreed to acquire Bangor Natural Gas Company for $70.9 million in cash, with the transaction closing on January 31, 2025[79]. - The Company may need to use a significant portion of its cash flow to repay its short-term and long-term debt, limiting available cash for other purposes[72]. - The Company's financial condition could be adversely affected by declines in capital market valuations, requiring substantial cash contributions to cover pension obligations[74]. - Cash provided by operating activities increased to $125.9 million in 2024, up $18.9 million from $107.0 million in 2023[209]. - Cash flow from net income, adjusted for non-cash charges, was $136.4 million in 2024, an increase of $16.4 million compared to $120.0 million in 2023, primarily due to higher electric and gas sales margin[210]. - Cash used in investing activities rose to ($169.9) million in 2024, an increase of $28.9 million from ($141.0) million in 2023, driven by normal utility capital expenditures[213]. - Cash provided by financing activities increased to $43.8 million in 2024, up $12.3 million from $31.5 million in 2023, primarily due to higher proceeds from long-term debt issuance of $110.0 million[214]. Regulatory and Operational Risks - The Company faces operational risks related to the disruption of natural gas pipeline transmission and electric transmission capacity, which could impair its ability to meet customer demands[49]. - Regulatory authorities have the power to impose financial penalties and sanctions, which could adversely affect the Company's financial condition and results of operations[66]. - The Company is subject to extensive environmental regulations, and any changes could result in increased compliance costs and liabilities[68]. - Approximately one-third of the Company's employees are represented by labor unions, which may lead to work stoppages or disputes affecting service delivery[60]. - The Company maintains insurance against some operational risks, but not all, which could lead to significant financial impacts in case of accidents[51]. - The Company relies on third-party suppliers for certain business functions, and substandard performance by these suppliers could harm its operations and reputation[57]. - The Company's ability to recover electricity and natural gas supply costs is subject to regulatory authority, and failure to do so could adversely affect its financial condition[65]. - Changes in taxation could adversely affect the Company's financial results, as it is subject to various taxing authorities[73]. - The Company faces risks from temperature sensitivity, as mild weather could decrease sales of natural gas and electricity[85]. Environmental and Sustainability Initiatives - The Company is committed to reducing greenhouse gas emissions from 2019 levels by at least 50% by 2030 and achieving net-zero emissions by 2050[68]. Cybersecurity Measures - The Company has a Cybersecurity Plan to manage risks from cybersecurity threats, which includes annual assessments and employee training[93]. - The cybersecurity management team is led by the Chief Technology Officer, who has over 30 years of experience in the utility industry, ensuring robust cybersecurity measures are in place[101]. - The Company has implemented a Cyber Incident Response Plan, which is updated annually and tested through industry drill exercises to ensure preparedness for cybersecurity incidents[105]. - The Company actively monitors cyber threat alerts and collaborates with external vendors for assessments and incident response to manage cybersecurity risks[102]. - The Board of Directors is responsible for overseeing the Company's Enterprise Risk Management program, including cybersecurity threats, with regular updates provided by management[100]. - The Company has not experienced any material cybersecurity threats that have affected its business strategy or financial condition as of December 31, 2024[98]. Capital Investments and Infrastructure - The investment in Net Utility Plant was $1,539.6 million as of December 31, 2024[17]. - The projected capital spending for 2025 is $176 million, reflecting ongoing investment in utility infrastructure[213]. - The Company owns five utility operating centers located in New Hampshire, Maine, and Massachusetts, with significant infrastructure including 1,741 overhead pole miles and 310 underground conduit distribution bank miles[107][109]. - The Company's natural gas operations include 1,464 miles of underground natural gas mains and 60,626 service pipes across various states[111]. Employee and Labor Relations - As of December 31, 2024, a total of 172 employees were represented by labor unions across various subsidiaries, with the largest group being 46 employees at Fitchburg, whose collective bargaining agreement expires on May 31, 2027[41]. - The Company expects to negotiate new collective bargaining agreements prior to their expiration dates to ensure continued operational stability[41].

Core Viewpoint - Unitil Corporation reported strong financial performance for the year ended December 31, 2024, with increases in both GAAP Net Income and Adjusted Net Income compared to 2023, driven by higher rates and customer growth [1][2][3]. Financial Performance - GAAP Net Income for 2024 was $47.1 million, or $2.93 per share, an increase of $1.9 million or $0.11 per share from 2023 [1]. - Adjusted Net Income was $47.8 million, or $2.97 per share, reflecting an increase of $2.6 million or $0.15 per share compared to 2023 [1]. - Electric GAAP Gross Margin was $78.0 million, a slight decrease of $0.1 million from 2023, primarily due to higher depreciation and amortization expenses [2]. - Electric Adjusted Gross Margin increased to $107.3 million, up $3.2 million from 2023, driven by higher rates and customer growth [3]. - Gas GAAP Gross Margin rose to $120.1 million, an increase of $6.0 million compared to 2023, supported by higher rates and customer growth [5]. - Gas Adjusted Gross Margin was $166.9 million, reflecting a $12.4 million increase from 2023, also attributed to higher rates and customer growth [5]. Expenses and Costs - Operation and Maintenance (O&M) expenses increased by $2.0 million in 2024, mainly due to higher labor costs [6]. - Depreciation and Amortization expenses rose by $8.7 million, reflecting higher depreciation rates and additional depreciation from increased utility plant in service [6]. - Taxes Other Than Income Taxes increased by $1.4 million, driven by higher local property taxes and payroll taxes [7]. - Interest Expense, Net increased by $0.6 million, primarily due to higher interest on long-term debt [7]. Dividend Information - The annual common dividend for 2024 was $1.70 per share, with a quarterly dividend declared at $0.45 per share in January 2025, increasing the annualized dividend rate to $1.80 per share [10]. Customer Metrics - Unitil serves approximately 109,400 electric customers and, following the acquisition of Bangor Natural Gas Company, approximately 97,600 natural gas customers [13].

Core Points - Unitil Corporation has completed the acquisition of Bangor Natural Gas Company for a total purchase price of $70.9 million, plus an estimated $0.3 million for working capital [3] - The acquisition adds approximately 8,500 customers and expands Unitil's distribution network by 351 miles of pipelines, bringing the total customer base to around 207,000 across Maine, New Hampshire, and Massachusetts [2][4] - The acquisition was finalized after receiving necessary approvals from the Maine Public Utilities Commission, and it was first announced on July 8, 2024 [1][3] Company Overview - Unitil Corporation is a public utility holding company that provides electricity and natural gas services in New England, specifically in Maine, New Hampshire, and Massachusetts [4] - The company is committed to delivering safe, clean, reliable, and affordable energy, and it emphasizes community involvement and the development of efficient energy practices [4] - Following the acquisition, Unitil's operating utilities will serve approximately 109,400 electric customers and 97,600 natural gas customers [4]

Core Viewpoint - Unitil Corporation (UTL) has announced a 5.9% increase in its quarterly dividend, raising it from 42.5 cents to 45 cents per share, payable on February 28, 2025, to stockholders of record as of February 13, 2025 [1] Dividend and Financial Metrics - The annualized dividend is now $1.80 per share, up from the previous $1.70, with a target annual dividend payout ratio of 55-65% [2] - The current dividend yield stands at 3.17%, significantly higher than the Zacks S&P 500 composite average of 1.19% [2] Growth and Investment Strategy - The company is projected to invest $910 million in capital projects through 2028, which is nearly 47% higher than the previous five years [4] - UTL's capital investments focus on upgrading metering infrastructure to enhance system utilization and customer end-use, with expected long-term rate base growth of 6.5-8.5% driven by these expenditures [4] - Ongoing interest rate cuts are anticipated to lower capital servicing costs, thereby increasing margins and profitability [4] Operational Efficiency - UTL is implementing cost control initiatives, expecting operation and maintenance expenses to grow at or below inflation, which should enhance margins over the long term [6] - The company projects an 8-10% annual total shareholder return, indicating strong growth prospects and the ability to sustain shareholder-friendly initiatives [6] Industry Context - Utility companies typically exhibit stable operations and earnings, allowing them to provide regular dividends to shareholders [7] - Recent dividend increases from other utility companies include NiSource (5.7%), ONE Gas (1%), and WEC Energy Group (6.9%) [7] Stock Performance - Over the past year, UTL's shares have increased by 12.9%, compared to the industry's growth of 16.8% [9]

HAMPTON, N.H., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Unitil Corporation (NYSE:UTL) (unitil.com) today announced that its Board of Directors raised the quarterly dividend on the Company’s common stock to $0.45 per share, an increase of $0.025 per share. Today’s action increased the Company’s annualized dividend by $0.10, to $1.80 per share. Also today, the Board declared the first quarter common stock dividend of $0.45 per share, payable February 28, 2025, to shareholders of record on February 13, 2025. About Un ...