Financial Data and Key Metrics Changes - The company reported adjusted net income of $28.4 million and adjusted earnings per share of $1.74 for Q1 2025, an increase of $1.2 million or $0.05 per share compared to Q1 2024 [6][16] - Electric adjusted gross margin was $27.5 million, up $400,000 or 1.5% year-over-year, driven by higher distribution rates and customer growth [18] - Gas adjusted gross margin reached $70.9 million, an increase of $9.9 million or approximately 16.2% compared to the same period in 2024, attributed to higher distribution rates, customer growth, and a return to normal winter weather [19] Business Line Data and Key Metrics Changes - The company added approximately 970 electric customers and 9,230 new gas customers in Q1 2025, including 8,730 from the Bangor acquisition [19][20] - Excluding the Bangor acquisition, gas adjusted gross margin was $68 million, reflecting a $7 million or 10.2% increase compared to Q1 2024 [20] Market Data and Key Metrics Changes - The company anticipates adding about 15,000 customers in Maine, where customer growth is projected at 4% to 5% [9] - The acquisition of Aquarian Water Company is expected to add 23,000 customers and $78 million of rate base as of December 31, 2024 [13] Company Strategy and Development Direction - The company is focused on expanding its regulated operations through recent acquisitions, including Bangor Natural Gas and Maine Natural Gas, which are expected to support long-term rate base and earnings growth [6][7] - The company reaffirmed its long-term guidance for earnings growth, dividend growth, and rate base growth, expecting acquisitions to support earnings growth toward the upper end of the 5% to 7% range over the next five years [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic initiatives and growth opportunities, stating that the company is in a strong position to provide long-term sustainable value [26] - The company expects rate base growth to accelerate to about 10% annually through 2029 due to acquisitions [14] Other Important Information - The company filed a distribution rate case with the New Hampshire Public Utilities Commission, proposing a revenue requirement increase of $18.5 million [22] - The current five-year capital budget totals approximately $1 billion, which is 46% higher than the previous five years, excluding growth from acquisitions [24] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance - The company's net income for Q1 2025 was $27.5 million, or $1.69 per share[8] - Adjusted net income for Q1 2025 was $28.4 million, or $1.74 per share, an increase of $1.2 million or $0.05 per share compared to 2024[8] - The company reaffirms its 2025 earnings guidance to be in the range of $3.01 to $3.17[55] Acquisitions and Growth - The company completed the acquisition of Bangor Natural Gas ("BNG") in January 2025, adding approximately 8,730 customers[8, 36] - The company announced the acquisition of Maine Natural Gas ("MNG") in April 2025 for approximately $86 million, expected to close by the end of the year, adding approximately 6,300 customers[8, 11] - The company announced the acquisition of three water utilities (Aquarion Water (MA & NH) and Abenaki Water (NH)) on May 6, 2025, for an enterprise value of $100 million, including approximately $30 million of debt[8, 18] Rate Base and Capital Investment - The company expects a long-term rate base growth of 6.5% - 8.5%[8] - The company's five-year projected capital investment is approximately $980 million, 46% higher than the prior five years[48] Natural Gas Operations - The company has 86,600 natural gas customers[3, 8, 59, 63, 64, 65, 66, 76, 79, 81] - Adjusted gross margin for gas operations increased by 16.2%, or $9.9 million, reflecting higher rates and customer growth[36, 37]

分组1 - Unitil reported quarterly earnings of $1.74 per share, missing the Zacks Consensus Estimate of $1.78 per share, but showing an increase from $1.69 per share a year ago, resulting in an earnings surprise of -2.25% [1] - The company posted revenues of $170.8 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 17.49%, and down from $178.7 million year-over-year [2] - Over the last four quarters, Unitil has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] 分组2 - Unitil shares have increased approximately 9.4% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.28 on $101 million in revenues, and for the current fiscal year, it is $3.08 on $558 million in revenues [7] 分组3 - The Zacks Industry Rank indicates that the Utility - Electric Power sector is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Centuri Holdings, another company in the same industry, is expected to report a quarterly loss of $0.16 per share, reflecting a year-over-year change of +99.9%, with a consensus EPS estimate revised 33.3% lower over the last 30 days [9]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=4&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Unitil Corporation's Q1 2025 net income was $27.5 million, or $1.69 per share, nearly flat compared to Q1 2024; adjusted net income, excluding acquisition costs, was $28.4 million, an increase of $1.2 million year-over-year, primarily driven by a $9.9 million increase in Gas Adjusted Gross Margin due to higher rates, customer growth, and colder weather, partially offset by higher expenses [Overview](index=4&type=section&id=Overview) Unitil Corporation is a public utility holding company focused on the local distribution of electricity and gas in New Hampshire, Massachusetts, and Maine, serving approximately 109,400 electric and 97,600 gas customers, with earnings primarily derived from its $1.62 billion investment in Net Utility Plant - Unitil is a public utility holding company whose principal business is the local distribution of electricity and gas in New Hampshire, Massachusetts, and Maine[14](index=14&type=chunk)[15](index=15&type=chunk) - The company serves approximately 109,400 electric customers and 97,600 gas customers. The gas customer count includes 8,500 from the recent acquisition of Bangor Natural Gas Company[15](index=15&type=chunk) - As of March 31, 2025, Unitil's investment in Net Utility Plant was **$1,618.9 million**[17](index=17&type=chunk) [Results of Operations](index=5&type=section&id=Results%20of%20Operations) For Q1 2025, GAAP Net Income was $27.5 million ($1.69/share), a slight increase from $27.2 million ($1.69/share) in Q1 2024, with Adjusted Net Income at $28.4 million ($1.74/share), driven by a $9.9 million rise in Gas Adjusted Gross Margin offset by higher O&M, Depreciation, and Net Interest Expense Q1 2025 vs Q1 2024 Earnings Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Income** | $27.5 million | $27.2 million | | **GAAP EPS** | $1.69 | $1.69 | | **Adjusted Net Income** | $28.4 million | $27.2 million | | **Adjusted EPS** | $1.74 | $1.69 | - Gas Adjusted Gross Margin increased by **$9.9 million** (**16.2%**) to **$70.9 million** in Q1 2025, driven by higher rates and customer growth ($7.7M) and colder weather ($2.2M). The Bangor acquisition contributed $2.9 million to this margin[39](index=39&type=chunk)[51](index=51&type=chunk) - Electric Adjusted Gross Margin increased by **$0.4 million** (**1.5%**) to **$27.5 million** in Q1 2025, reflecting higher rates and customer growth[38](index=38&type=chunk)[47](index=47&type=chunk) - O&M expenses increased by **$4.4 million**, reflecting higher utility operating costs ($1.6M), labor costs ($1.5M), and professional fees ($1.3M). This includes $0.7M in Bangor O&M and $1.2M in acquisition transaction costs[40](index=40&type=chunk)[57](index=57&type=chunk) - Depreciation and Amortization expense rose by **$3.7 million** due to higher depreciation rates from recent rate cases and increased utility plant in service[41](index=41&type=chunk)[58](index=58&type=chunk) Net Interest Expense Breakdown (in millions) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Interest Expense** | | | | | Long-term Debt | $8.1 | $6.3 | $1.8 | | Short-term Debt | $1.4 | $2.8 | ($1.4) | | Regulatory Liabilities | $1.2 | $0.2 | $1.0 | | **Interest (Income)** | | | | | AFUDC and Other | ($0.7) | ($1.1) | $0.4 | | **Total Interest Expense, Net** | **$9.1** | **$7.3** | **$1.8** | [Liquidity, Commitments, and Capital Requirements](index=11&type=section&id=Liquidity%2C%20Commitments%2C%20and%20Capital%20Requirements) Unitil funds operations through internally generated cash and short-term borrowings, with its revolving credit facility increased to $275 million and extended to September 2028, maintaining investment-grade credit ratings while issuing $135 million in new long-term notes in August 2024 - In January 2025, the company increased its revolving Credit Facility limit from **$200 million** to **$275 million** and extended the term to September 29, 2028[66](index=66&type=chunk) Revolving Credit Facility Status ($ millions) | Date | Limit | Outstanding | Available | | :--- | :--- | :--- | :--- | | **Mar 31, 2025** | $275.0 | $172.9 | $102.1 | | **Dec 31, 2024** | $200.0 | $105.8 | $94.2 | - The company's credit ratings are **'BBB+'** from S&P and **'Baa1'/'Baa2'** from Moody's for its utility subsidiaries[71](index=71&type=chunk) - In August 2024, Unitil and its subsidiaries issued a total of **$135 million** in new long-term notes and bonds with maturities ranging from 2034 to 2054[69](index=69&type=chunk)[70](index=70&type=chunk) [Financial Statements (Unaudited)](index=13&type=section&id=Item%201.%20Financial%20Statements%E2%80%94Unaudited) The unaudited financial statements for Q1 2025 show total operating revenues of $170.8 million and net income of $27.5 million, with total assets growing to $1,890.7 million primarily due to increased Net Utility Plant, and cash provided by operating activities at $52.1 million, while investing activities used $103.8 million, largely for property additions and the Bangor Natural Gas acquisition [Consolidated Statements of Earnings](index=14&type=section&id=Consolidated%20Statements%20of%20Earnings) For the three months ended March 31, 2025, Unitil reported total operating revenues of $170.8 million, a decrease from $178.7 million in the prior-year period, mainly due to lower cost of sales pass-throughs, resulting in operating income of $46.2 million and net income of $27.5 million, with basic and diluted EPS remaining flat at $1.69 Consolidated Earnings (Three Months Ended March 31, in millions) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total Operating Revenues | $170.8 | $178.7 | | Total Operating Expenses | $124.6 | $134.5 | | Operating Income | $46.2 | $44.2 | | Income Before Income Taxes | $37.0 | $36.6 | | **Net Income** | **$27.5** | **$27.2** | | **EPS – Basic and Diluted** | **$1.69** | **$1.69** | [Consolidated Balance Sheets](index=15&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Unitil's total assets increased to $1,890.7 million from $1,794.5 million at year-end 2024, driven by a rise in Net Utility Plant to $1,618.9 million, while total liabilities increased to $719.4 million due to a $67.1 million increase in short-term debt, and total common stock equity rose to $533.9 million Consolidated Balance Sheet Highlights (in millions) | Account | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,890.7** | **$1,794.5** | | Net Utility Plant | $1,618.9 | $1,539.6 | | **Total Liabilities** | **$719.4** | **$643.6** | | Short-Term Debt | $172.9 | $105.8 | | Long-Term Debt, Net | $637.2 | $638.4 | | **Total Common Stock Equity** | **$533.9** | **$512.3** | [Consolidated Statements of Cash Flows](index=17&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of 2025, cash provided by operating activities significantly increased to $52.1 million, while cash used in investing activities was $103.8 million, primarily for property additions and the $71.2 million acquisition of Bangor Natural Gas, with financing activities providing $55.6 million, resulting in a net cash increase of $3.9 million Cash Flow Summary (Three Months Ended March 31, in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $52.1 | $26.6 | | Cash Used in Investing Activities | ($103.8) | ($20.2) | | Cash Provided by (Used In) Financing Activities | $55.6 | ($6.6) | | **Net Increase (Decrease) in Cash** | **$3.9** | **($0.2)** | - The acquisition of Bangor Natural Gas, net of cash acquired, resulted in a cash outflow of **$71.2 million**[94](index=94&type=chunk) [Notes to Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, recent acquisitions including Bangor Natural Gas for $71.2 million and an agreement to acquire Maine Natural Gas for $86.0 million, ongoing rate cases and regulatory filings across service territories, and environmental liabilities of $7.8 million for MGP site remediation - On January 31, 2025, the Company acquired Bangor Natural Gas Company for **$71.2 million**, adding approximately 8,500 gas customers in central Maine[141](index=141&type=chunk) - On March 31, 2025, the Company entered an agreement to acquire Maine Natural Gas Company from Avangrid for **$86.0 million** in cash, pending regulatory approval[145](index=145&type=chunk) - On May 1, 2025, Unitil Energy filed for an **$18.5 million** increase in electric distribution base rates in New Hampshire[190](index=190&type=chunk) - Fitchburg is implementing a multi-year Grid Modernization Plan with a budget of **$11.2 million** for Advanced Metering Infrastructure (AMI) through 2025 and is developing an Electric Sector Modernization Plan (ESMP) to accommodate DERs and electrification[201](index=201&type=chunk)[211](index=211&type=chunk) - Total environmental obligations were **$7.8 million** as of March 31, 2025, primarily for the remediation of former manufactured gas plant (MGP) sites[247](index=247&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk primarily through its variable-rate short-term debt, where a 1% change in interest rates would alter annual interest expense by approximately $250,000 for every $25 million of short-term debt outstanding, while commodity price risk is limited due to regulatory pass-through mechanisms - A **1%** change in interest rates on an average short-term debt balance of **$25 million** would result in an approximate **$250,000** change in annual interest expense[80](index=80&type=chunk) - The average interest rate on short-term borrowings was **5.6%** for the three months ended March 31, 2025, down from **6.7%** in the same period of 2024[80](index=80&type=chunk) - Commodity price risk is limited because the company's regulatory framework allows for full collection of electric and gas supply costs from customers on a pass-through basis[81](index=81&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, the company's management concluded that its disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[258](index=258&type=chunk) - No material changes were made to the Company's internal control over financial reporting during the first quarter of 2025[259](index=259&type=chunk) [Part II. Other Information](index=44&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and administrative proceedings that arise in the ordinary course of business, which management believes will not have a material effect on its financial position - The Company is involved in ordinary course legal proceedings and claims, which management does not expect to have a material effect on its financial position[260](index=260&type=chunk) [Risk Factors](index=44&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the year ended December 31, 2024 - No material changes to the risk factors disclosed in the 2024 Form 10-K have occurred[261](index=261&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) For the fiscal period ended March 31, 2025, the company did not conduct any sales of unregistered equity securities nor did it make any purchases of its own equity securities - There were no sales of unregistered equity securities or issuer purchases of equity securities during the quarter ended March 31, 2025[262](index=262&type=chunk)[263](index=263&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) On May 6, 2025, the company issued a press release announcing its Q1 2025 financial results, and no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - A press release announcing Q1 2025 earnings was issued on May 6, 2025[264](index=264&type=chunk) - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[265](index=265&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements related to acquisitions and financing, CEO/CFO/CAO certifications as required by the Sarbanes-Oxley Act, the earnings press release, and interactive data files (XBRL) - Exhibits filed include the Stock Purchase Agreement for Maine Natural Gas, amendments to the Credit Agreement, CEO/CFO/CAO certifications, and the Q1 2025 earnings press release[267](index=267&type=chunk)[268](index=268&type=chunk)

Core Viewpoint - Unitil Corporation reported a net income of $27.5 million, or $1.69 in EPS, for Q1 2025, reflecting a slight increase compared to the same period in 2024, driven by strong operational performance and strategic initiatives [1][2]. Financial Performance - The adjusted net income for Q1 2025 was $28.4 million, or $1.74 in EPS, an increase of $1.2 million, or $0.05 in EPS, compared to Q1 2024 [1][19]. - Electric GAAP gross margin decreased to $19.6 million, down $0.5 million from Q1 2024, primarily due to higher depreciation and amortization expenses [2]. - Electric adjusted gross margin increased to $27.5 million, reflecting a $0.4 million rise compared to Q1 2024, attributed to higher rates and customer growth [3][24]. - Gas GAAP gross margin rose to $57.1 million, an increase of $6.9 million from Q1 2024, driven by higher rates, customer growth, and favorable winter weather [5][24]. - Gas adjusted gross margin reached $70.9 million, up $9.9 million from the previous year, also influenced by higher rates and customer growth [6][24]. Operational Expenses - Operation and maintenance expenses increased by $4.4 million in Q1 2025, reflecting higher utility operating costs, labor costs, and professional fees [7]. - Depreciation and amortization expenses rose by $3.7 million, influenced by higher depreciation rates and additional utility plant in service [8]. - Interest expense increased by $1.8 million, primarily due to higher long-term debt levels and interest expenses on regulatory liabilities [11]. Sales and Revenue - Total electric kWh sales increased by 6.9% to 438.2 million kWh in Q1 2025, with residential sales up by 11.1% [27]. - Total gas therm sales increased by 26.1% to 113.1 million therms, with residential sales rising by 33.5% [27]. - Electric revenues decreased by $13.4 million to $60.2 million, while gas revenues increased by $5.5 million to $110.6 million [27]. Dividends - The Board of Directors declared quarterly dividends of $0.45 per share, maintaining an annualized dividend rate of $1.80 per share, continuing a record of consistent quarterly payments [13].

Core Viewpoint - Unitil Corporation has announced a definitive agreement to acquire Aquarion Water Company and its subsidiaries for $100 million, including the assumption of $30 million in debt, which is expected to enhance long-term earnings growth [1][2][3] Group 1: Transaction Details - The acquisition involves Aquarion Water Company of Massachusetts, Aquarion Water Company of New Hampshire, and Abenaki Water Co., Inc. [1] - The total purchase price is $100 million, which includes the assumption of approximately $30 million in debt [1] - The transaction is subject to customary closing conditions, including regulatory approvals from the Massachusetts Department of Public Utilities, New Hampshire Public Utilities Commission, and Maine Public Utilities Commission [1][2] Group 2: Operational Impact - The Aquarion Companies operate approximately 330 miles of water distribution mains, serving around 12,000 customers in Massachusetts and 11,000 customers in New Hampshire [2] - The estimated rate base for the Aquarion Companies is approximately $78 million as of December 31, 2024, and is forecasted to grow to $87 million by December 31, 2025 [2] - The acquisition is expected to be earnings accretive in the long term, supporting Unitil's projected earnings per share growth of 5% to 7% [2] Group 3: Strategic Rationale - The acquisition is viewed as a unique opportunity for Unitil to expand into a complementary regulated utility service in its current operational states [3] - Unitil aims to integrate the locally managed teams of the Aquarion Companies while maintaining high service quality for the communities served [3] Group 4: Financing and Advisory - Unitil has secured committed debt financing from Scotiabank to fund the acquisition [3] - Scotiabank and the law firm Dentons are advising Unitil on this transaction [3]

Corporate Governance - Shareholders elected four new members to the Board of Directors for a term of three years: Anne L. Alonzo, Katherine Kountze, Jane Lewis-Raymond, and David A. Whiteley [1] - The selection of Deloitte & Touche, LLP as independent registered public accountants for 2025 was ratified by shareholders [1] - An advisory vote on executive compensation received approval from 91% of shareholders [2] Strategic Direction - The Chairman and CEO, Thomas P. Meissner, Jr., highlighted the company's achievements in 2024 and discussed the strategic transition to a clean energy future aimed at creating long-term sustainable value [3] Company Overview - Unitil Corporation is a public utility holding company providing electricity and natural gas in New England, serving approximately 109,400 electric customers and 97,600 natural gas customers [4]

Core Points - Unitil Corporation is set to release its first quarter 2025 earnings on May 6, 2025, after market close [1] - A conference call and webcast to discuss the quarterly results will take place on May 7, 2025, at 2:00 p.m. (ET) [1] - Presentation materials related to the earnings will be available on the Company's Investors page prior to the call [1] Company Overview - Unitil Corporation provides electricity and natural gas services in New England, focusing on safe and reliable energy delivery [3] - The company operates in Maine, New Hampshire, and Massachusetts, serving approximately 109,400 electric customers and 97,600 natural gas customers [3] - Unitil is committed to community involvement and the development of efficient energy delivery technologies [3]

Company Overview - Unitil (UTL) is a utility company headquartered in Hampton, which has experienced a price change of 8.36% this year [3] - The company currently pays a dividend of $0.45 per share, resulting in a dividend yield of 3.07%, which is higher than the Utility - Electric Power industry's yield of 3.05% and the S&P 500's yield of 1.69% [3] Dividend Performance - Unitil's annualized dividend of $1.80 has increased by 5.9% from the previous year [4] - Over the past five years, Unitil has raised its dividend five times, achieving an average annual increase of 3.51% [4] - The current payout ratio for Unitil is 58%, indicating that the company pays out 58% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $3.08 per share, reflecting a year-over-year earnings growth rate of 3.70% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - It is noted that high-yielding stocks may face challenges during periods of rising interest rates, yet UTL is considered a compelling investment opportunity due to its strong dividend profile [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]

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]