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Unitil(UTL) - 2024 Q3 - Earnings Call Transcript
UTLUnitil(UTL)2024-11-05 16:47
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Financial Data and Key Metrics Changes - The company reported breakeven results for Q3 2024, with net income for the first nine months at 31.5million,or31.5 million, or 1.96 per share, an increase of 0.11persharecomparedtothesameperiodin2023[6][17]−Adjustednetincomeforthefirstninemonthswas0.11 per share compared to the same period in 2023 [6][17] - Adjusted net income for the first nine months was 32.1 million, or 2pershare,reflectingstrongoperationalperformanceanddisciplinedcostmanagement[8]BusinessLineDataandKeyMetricsChanges−Electricadjustedgrossmarginwas2 per share, reflecting strong operational performance and disciplined cost management [8] Business Line Data and Key Metrics Changes - Electric adjusted gross margin was 81.7 million for the nine months ended September 30, 2024, an increase of 1.6millioncomparedtothesameperiodin2023,drivenbyhigherdistributionratesandcustomergrowth[19]−Gasadjustedgrossmarginwas1.6 million compared to the same period in 2023, driven by higher distribution rates and customer growth [19] - Gas adjusted gross margin was 115.6 million for the nine months ended September 30, 2024, an increase of 9.2millioncomparedtothesameperiodin2023,alsoreflectinghigherdistributionratesandcustomergrowth[20]MarketDataandKeyMetricsChanges−Thecompanyaddedapproximately1,100newelectriccustomersand720newgascustomerscomparedtothesameperiodin2023[19][20]−Approximately609.2 million compared to the same period in 2023, also reflecting higher distribution rates and customer growth [20] Market Data and Key Metrics Changes - The company added approximately 1,100 new electric customers and 720 new gas customers compared to the same period in 2023 [19][20] - Approximately 60% of the company's gas customers are under decoupled rates, which supported gas margin by approximately 0.20 per share [20] Company Strategy and Development Direction - The company reaffirmed long-term earnings growth of 5% to 7%, supported by rate-based growth in the range of 6.5% to 8.5% [7] - A significant shift towards electric investments is anticipated, particularly in Massachusetts, as the company completes pipeline replacement programs on the gas side [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that full-year earnings will remain within long-term guidance, with a strong investment outlook and projected capital spending through 2028 totaling approximately 910million[6][27]−Thecompanyisfocusedonsustainability,aimingfora50910 million [6][27] - The company is focused on sustainability, aiming for a 50% reduction in greenhouse gas emissions by 2030 and net zero emissions by 2050 [10] Other Important Information - The company filed an uncontested rate case settlement with FERC, requesting a 3 million annual revenue increase for Granite State Gas Transmission, representing a 30% increase to current revenues [24] - The acquisition of Bangor Natural Gas is expected to close by the end of Q1 2025, complementing the company's existing operations in Maine [26] Q&A Session Summary Question: Breakdown of capital spending program by asset class - Management indicated a shift towards electric investments, especially in Massachusetts, with a current mix of about two-thirds gas and one-third electric for rate base [38] Question: Impact of state policies on rate-based growth target - Management noted that there is potential upside to the 6.5% to 8.5% rate-based growth target due to new policies, particularly in Massachusetts [40]