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]

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]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $47.8 million or $2.97 per share, an increase of $0.15 per share or 5.3% over 2023 [7][15] - The consolidated return on equity was 9.4%, reflecting effective cost management and regulatory outcomes [7] Business Line Data and Key Metrics Changes - Electric adjusted gross margin for the year was $107.3 million, an increase of $3.2 million compared to 2023, driven by higher distribution rates and customer growth [16] - Gas adjusted gross margin for the year was $166.9 million, an increase of $12.4 million compared to 2023, also supported by higher distribution rates and customer growth [17][18] Market Data and Key Metrics Changes - Approximately 60% of the company's gas customers were under decoupled rates, which supported gas adjusted gross margin by approximately $0.28 per share in 2024 [19] Company Strategy and Development Direction - The company completed the acquisition of Bangor Natural Gas for $70.9 million, which is expected to be earnings accretive in the long run [10][11] - A five-year investment plan through 2029 totals approximately $980 million, which is 46% higher than the previous five years, aimed at growing the rate base [22] 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 [9][21] - The company expects capital spending of approximately $176 million in 2025 for strategic system investments [23] Other Important Information - The Board of Directors approved a quarterly dividend increase of $0.025 per share, bringing the annual dividend to $1.8 per share in 2025, a 5.9% increase from 2024 [27] Q&A Session Summary Question: Can you walk through the strategy for the distribution rate case at UES and the potential customer bill impact? - Management indicated that customer bill impacts will not be known until the case is filed, expected in the second quarter [33][34] 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 [35][37]

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].