UNITIL CORP Q2 FY2024 earnings call

Net Income

• Second quarter net income was $4.3 million or $0.27 per share, an increase of $0.02 per share over Q2 2023. Through the first half of 2024, net income was $31.5 million or $1.96 per share, an increase of $0.20 per share over the same period in 2023.

Acquisition of Bangor Natural Gas

• Agreed to purchase Bangor Natural Gas Company, a fully regulated natural gas distribution utility. The purchase price is $70.9 million, subject to customary adjustments. Bangor meets criteria for acquisitions, owns ~350 miles of pipeline, serves ~8,500 customers with strong growth, and has the lowest natural gas rates in Maine.

Capital Investment Plan

• Capital investment plan through 2028 totals approximately $910 million, with opportunities for additional investments.

Rate Case Outcomes

• Received rate case order for electric and gas divisions in Massachusetts, new base distribution rates took effect on July 1. Approved return on equity of 9.4% for both electric and gas divisions, and five-year performance-based rate plans.

For the first six months ended June 30, 2024, electric adjusted gross margin was $52 million, an increase of $1.1 million compared to the same period in 2023. The company added approximately 750 new electric customers. Gas adjusted gross margin was $92.3 million for the first six months ended June 30, 2024, an increase of $8.1 million or approximately 10% compared to the same period in 2023. The company added approximately 1,100 new gas customers, and approximately 60% of the company's gas customers are under decoupled rates.

Full Year Earnings

• Confident that full year earnings will be within long-term guidance range.

Long-Term Growth

• Reaffirm long-term earnings growth of 5% to 7%, supported by rate base growth of 6.5% to 8.5% and dividend payout ratio between 55% and 65%.

Acquisition Timeline

• Expect the transaction to close by the end of the first quarter of 2025, subject to approval by the Maine Public Utilities Commission.

Forward-Looking Statements

• Statements made are forward-looking and involve risks and uncertainties that can cause actual results to differ materially from those predicted. Should be considered together with cautionary statements in most recent annual report on Form 10-K and other SEC filings.

Q: Ken Sheldon with Bank of America's question?

A: No further questions