Unitil(US:UTL)2025-02-10 22:00Revenue 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].