Eversource(US:ES)2024-05-03 18:09PART I – FINANCIAL INFORMATION Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for Eversource Energy and its key subsidiaries for Q1 2024, including balance sheets, income statements, and cash flows Eversource Energy and Subsidiaries Financial Statements Eversource Energy reported consolidated net income attributable to common shareholders of $521.8 million for Q1 2024, an increase from $491.2 million in Q1 2023 Eversource Energy Q1 2024 vs Q1 2023 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Revenues | $3,332.6 M | $3,795.6 M | | Operating Income | $846.0 M | $749.6 M | | Net Income Attributable to Common Shareholders | $521.8 M | $491.2 M | | Diluted EPS | $1.49 | $1.41 | Eversource Energy Balance Sheet Summary | Metric | As of Mar 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $57,322.2 M | $55,612.2 M | | Total Liabilities | $42,622.9 M | $41,074.1 M | | Total Common Shareholders' Equity | $14,543.6 M | $14,173.9 M | - Net cash provided by operating activities increased to $291.3 million in Q1 2024 from $69.2 million in Q1 2023, while cash used in investing activities rose to $1.45 billion from $1.05 billion, primarily due to higher investments in property, plant, and equipment22 The Connecticut Light and Power Company (CL&P) Financial Statements CL&P reported a net income of $138.4 million for Q1 2024, a decrease from $148.4 million in Q1 2023, primarily due to lower operating revenues CL&P Q1 2024 vs Q1 2023 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Revenues | $1,121.3 M | $1,338.9 M | | Operating Income | $222.4 M | $223.9 M | | Net Income | $138.4 M | $148.4 M | NSTAR Electric Company and Subsidiary Financial Statements NSTAR Electric's net income increased to $160.0 million in Q1 2024 from $133.8 million in Q1 2023, driven by higher operating income NSTAR Electric Q1 2024 vs Q1 2023 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Revenues | $947.6 M | $956.3 M | | Operating Income | $213.0 M | $176.3 M | | Net Income | $160.0 M | $133.8 M | Public Service Company of New Hampshire (PSNH) and Subsidiaries Financial Statements PSNH reported a net income of $48.4 million for Q1 2024, up from $40.3 million in Q1 2023, supported by higher operating income despite a drop in revenues PSNH Q1 2024 vs Q1 2023 Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Revenues | $326.1 M | $420.2 M | | Operating Income | $76.3 M | $64.6 M | | Net Income | $48.4 M | $40.3 M | Combined Notes to Condensed Financial Statements (Unaudited) The notes detail accounting policies, planned sale of offshore wind investments, regulatory assets and liabilities, debt financing, and commitments - Eversource is pursuing the sale of its offshore wind investments, with agreements to sell its 50% interests in South Fork Wind and Revolution Wind for approximately $1.1 billion and its 50% share of Sunrise Wind8183 Regulatory Assets and Liabilities (As of March 31, 2024) | Category | Eversource | CL&P | NSTAR Electric | PSNH | | :--- | :--- | :--- | :--- | :--- | | Total Regulatory Assets | $6,728.8 M | $2,427.7 M | $2,040.9 M | $999.6 M | | Total Regulatory Liabilities | $4,692.9 M | $1,451.2 M | $2,008.3 M | $475.5 M | - In Q1 2024, Eversource parent and CL&P issued a combined $1.7 billion in new long-term debt to repay short-term debt and fund capital expenditures and working capital126 - Eversource has recorded a reserve of $39.1 million for the second FERC ROE complaint period, representing the difference between billed rates and a 10.57% base ROE and 11.74% incentive cap151 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) This section provides management's perspective on Q1 2024 financial results, covering segment performance, liquidity, capital resources, strategic developments, and regulatory matters Q1 2024 Earnings Summary by Segment | Segment | Q1 2024 EPS | Q1 2023 EPS | | :--- | :--- | :--- | | Electric Distribution | $0.48 | $0.47 | | Electric Transmission | $0.50 | $0.45 | | Natural Gas Distribution | $0.54 | $0.49 | | Water Distribution | $0.01 | $0.00 | - Eversource reaffirmed its 2024 non-GAAP EPS guidance range of $4.50 to $4.67 and its long-term EPS growth rate projection of 5% to 7% through 2028185 - Strategic developments include agreements to sell all offshore wind interests to GIP and Ørsted, and an exploratory assessment of a potential sale of the water distribution business185 Eversource Energy and Subsidiaries MD&A Consolidated earnings increased in Q1 2024, driven by strong performance in electric transmission and natural gas segments due to higher rate bases and infrastructure investment - Electric transmission earnings grew by $21.6 million due to a higher transmission rate base from continued infrastructure investment189 - Natural gas distribution earnings increased by $20.3 million, primarily from capital tracking mechanisms and a rate increase at NSTAR Gas190 - The company is executing its exit from the offshore wind business, with agreements to sell its interests in South Fork Wind, Revolution Wind, and Sunrise Wind, using proceeds to pay down parent company debt232231236 Q1 2024 Capital Expenditures (Consolidated) | Business | Q1 2024 Capex | Q1 2023 Capex | | :--- | :--- | :--- | | Electric Transmission | $362.8 M | $246.8 M | | Total Distribution | $656.1 M | $499.5 M | | Electric Distribution | $431.9 M | $314.9 M | | Natural Gas Distribution | $193.1 M | $153.2 M | | Water Distribution | $31.1 M | $31.4 M | CL&P, NSTAR Electric, and PSNH MD&A CL&P's earnings decreased due to higher expenses, while NSTAR Electric and PSNH saw earnings growth driven by rate increases and higher transmission earnings - CL&P's earnings decreased by $10.0 million, primarily due to higher O&M, interest, and depreciation expenses322 - NSTAR Electric's earnings increased by $26.2 million, driven by a base distribution rate increase effective January 1, 2024, and higher transmission earnings323 - PSNH's earnings increased by $8.1 million, mainly from a higher transmission rate base and increased sales volumes324 Quantitative and Qualitative Disclosures About Market Risk The company's market risk is primarily related to commodity prices, interest rates, and credit, with mitigation strategies in place for each - Commodity price risk is minimal for the company as the economic impacts of energy contracts are passed on to customers through regulated rates329 - Interest rate risk is significantly reduced as all long-term debt was at a fixed interest rate as of March 31, 2024331 Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal controls over financial reporting - The principal executive officer and principal financial officer concluded that the disclosure controls and procedures for Eversource and its reporting subsidiaries are effective as of March 31, 2024335 - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls336 PART II – OTHER INFORMATION Legal Proceedings The company reports no new material legal proceedings and no material changes to previously disclosed legal proceedings from its 2023 Form 10-K - There have been no material legal proceedings identified and no material changes with regard to legal proceedings previously disclosed in the 2023 Form 10-K338 Risk Factors The company states that no additional risk factors have been identified and no material changes to previously disclosed risk factors from its 2023 Form 10-K - There have been no additional risk factors identified and no material changes with regard to the risk factors previously disclosed in the 2023 Form 10-K339 Unregistered Sales of Equity Securities and Use of Proceeds During Q1 2024, the company purchased 1,039 of its common shares at an average price of $58.95 per share for 401k matching contributions - In March 2024, the company purchased 1,039 common shares at an average price of $58.95 per share for matching contributions under the Eversource 401k Plan341342 Other Information The company disclosed that no directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024345 Exhibits This section lists the exhibits filed with the Form 10-Q, including supplemental indentures, executive compensation forms, and required certifications