Unitil(US:UTL)2025-11-03 22:01Customer Base and Operations - Unitil serves approximately 109,400 electric customers and 97,600 gas customers, including 8,500 gas customers from the acquisition of Bangor Natural Gas Company[13]. - The Company operates two reportable segments: utility electric operations and utility gas operations, with a diversified customer mix across its subsidiaries[159][160]. Financial Performance - For the nine months ended September 30, 2025, GAAP Net Income was $31.2 million, with an Adjusted Net Income of $33.5 million, reflecting a per share increase from $2.00 to $2.03[28]. - Total Operating Revenue for the three months ended September 30, 2025, was $101.1 million, an increase of $8.2 million or 8.9% compared to $92.9 million in the same period in 2024[30]. - Net Income for the third quarter of 2025 was ($0.3) million, or ($0.02) in EPS, a decrease of $0.3 million in Net Income compared to the third quarter of 2024[33]. - Net income applicable to common shares for the nine months ended September 30, 2025, was $31.2 million, slightly down from $31.5 million in the same period of 2024[91]. - Basic and diluted earnings per common share for the nine months ended September 30, 2025, were $1.89, compared to $1.96 in 2024[91]. Revenue and Margin Analysis - Unitil's electric and gas sales in Massachusetts and New Hampshire are largely decoupled, reducing revenue dependency on the volume of sales[22]. - Electric GAAP Gross Margin increased by $2.8 million to $25.1 million for the three months ended September 30, 2025, and by $2.5 million to $62.7 million for the nine months ended September 30, 2025, compared to the same periods in 2024[30][35]. - Gas GAAP Gross Margin was $12.4 million for the three months ended September 30, 2025, an increase of $0.6 million, and $92.7 million for the nine months, an increase of $10.3 million compared to the same periods in 2024[31]. - Adjusted Gross Margin for Electric was $33.1 million for the three months and $86.4 million for the nine months ended September 30, 2025, reflecting increases of $3.4 million and $4.7 million, respectively, compared to the same periods in 2024[35][46]. - Adjusted Gross Margin for Gas was $26.6 million for the three months and $134.7 million for the nine months ended September 30, 2025, increases of $3.3 million and $19.1 million, respectively, compared to the same periods in 2024[36]. Expenses and Costs - Operating and Maintenance (O&M) expenses increased by $1.6 million for the three months and $8.7 million for the nine months ended September 30, 2025, compared to the same periods in 2024[37]. - Depreciation and Amortization expense increased by $3.1 million for the three months and $10.5 million for the nine months ended September 30, 2025, compared to the same periods in 2024[38]. - Cost of electric sales decreased by $1.6 million, or 4.9%, in Q3 2025 and $21.7 million, or 19.6%, in the first nine months of 2025 compared to the same periods in 2024[54]. - Cost of gas sales increased by $3.1 million, or 43.7%, in Q3 2025 and $5.1 million, or 8.6%, in the first nine months of 2025 compared to the same periods in 2024[55]. Capital and Financing - The Company raised approximately $71.8 million from the issuance of 1,602,358 shares at $46.65 per share, which will be used for equity capital contributions, debt repayment, and general corporate purposes[65]. - As of September 30, 2025, the Company had total gross borrowings of $380.0 million and total gross repayments of $368.3 million for the nine months ended[71]. - The Credit Facility borrowing limit was increased from $200 million to $275 million, with a maturity date extended to September 29, 2028[69]. - The Company entered into a senior unsecured delayed-draw term loan facility of $86.0 million to fund the acquisition of Maine Natural Gas[74]. - The average interest rate on the Company's short-term borrowings for the three months ended September 30, 2025 was 5.5%, compared to 6.6% for the same period in 2024[85]. Acquisitions and Growth - The Company acquired Maine Natural Gas Company on October 31, 2025, expanding its natural gas distribution capabilities[19]. - The company completed the acquisition of Bangor Natural Gas Company for $71.4 million, which included $66.7 million of net utility plant and $1.6 million of goodwill[148][149]. - The company has entered into a definitive agreement to acquire Aquarion Water Companies for approximately $100.0 million, which includes $70.0 million in cash and $30.0 million of assumed debt[152]. Regulatory and Compliance - The Company is subject to comprehensive regulation by federal and state authorities, which significantly affects its operations and financial position[20]. - The MPUC approved a $7.6 million increase in distribution revenues for Northern Utilities effective October 1, 2023, reflecting a return on equity of 9.35%[203]. - Northern Utilities' TIRA mechanism allows for annual rate adjustments, with a recent request to increase annual base rates by $2.1 million for 2024 eligible facilities approved for rates effective May 1, 2025[204]. - The NHPUC approved a $6.1 million increase in permanent distribution rates for Northern Utilities effective August 1, 2022, along with a revenue decoupling mechanism[206]. Employee and Workforce - As of September 30, 2025, the Company had 575 employees and maintained a good relationship with its workforce[81].