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Unitil(UTL) - 2024 Q4 - Earnings Call Transcript
UTLUnitil(UTL)2025-02-11 16:44
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Financial Data and Key Metrics Changes - Adjusted earnings for fiscal year 2024 were 47.8millionor47.8 million or 2.97 per share, an increase of 0.15pershareor5.30.15 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 8.7million[26][68]BusinessLineDataandKeyMetricsChanges−Electricadjustedgrossmarginwas8.7 million [26][68] Business Line Data and Key Metrics Changes - Electric adjusted gross margin was 107.3 million, an increase of 3.2millioncomparedto2023,supportedbyhigherdistributionratesandcustomergrowth[23][64]−Gasadjustedgrossmarginwas3.2 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 12.4millioncomparedto2023,withapproximately730newgascustomersadded[25][65]MarketDataandKeyMetricsChanges−Approximately6012.4 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 980million,whichis46980 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 3.17pershare[12][29]−Thecompanyiswell−positionedtocontinuesuccessanddeliveroncommitmentstocustomers,communities,andshareholders[39][80]OtherImportantInformation−Theboardofdirectorsapprovedaquarterlydividendincreaseof3.17 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 1.80pershare,a5.91.80 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]