Unitil Corporation Q1 FY2026 earnings call

• Tom Eisner mentioned adjusted net income and earnings per share increase. Integration work for main gas acquisitions has proceeded as planned, with Bangor Natural Gas fully integrated last year and Maine natural gas integration substantially complete. Recently received order for New Hampshire electric rate case approving settlement agreement, filed rate case for Northern Utilities gas subsidiary in New Hampshire and expect to file gas rate case for Northern Utilities in Maine on or about June 1st. • Dan Herstock discussed first quarter financial results, including adjusted net income and earnings per share, electric and gas adjusted gross margins, earnings bridge, regulatory approvals in Connecticut for Aquarian sale, New Hampshire Electric Company rate case approval, Northern Utilities gas subsidiary rate case filing, and five-year capital investment plan totaling approximately $1.2 billion.

Adjusted net income excluding transaction-related costs was $33.8 million, adjusted earnings per share was $1.88. Electric adjusted gross margin for first quarter was $29.6 million, an increase of $2.1 million compared to same period in 2025. Gas adjusted gross margin was $82.1 million, an increase of $11.2 million compared to same period in 2025. Bangor Natural Gas contributed $5.1 million and Maine Natural Gas contributed $6.1 million to adjusted gross gas margins in recent quarter. Approximately 52% of company's gas customers are under decoupled rates, with Maine being the only non-decoupled service area. Rate base increased 17% compared to prior year, average rate base growth over past five years is 8.1% near upper end of long-term rate base growth guidance of 6.5% to 8.5%.

• Reaffirmed 2026 guidance range of $3.20 to $3.36 per share with midpoint of $3.28. • Reaffirmed long-term earnings growth of 5% to 7%.

• Forward-looking statements involve risk and uncertainties that can cause actual results to differ materially from predicted. • The risk that the two conditions in the Massachusetts order related to sale of Hingham assets and stay-out period pose to Unitil is unacceptable and would likely prevent moving forward with Massachusetts operations as part of the transaction. • The FERC transmission formula rate proceeding resulted in a charge of approximately $900,000 related to refund obligation for retroactive reduction to return on equity for transmission assets, though company doesn't expect significant effect on future earnings.

Q: Given the recent updates with respect to Aquarian, will the terms and conditions of the Aquarian approval have any impact on your earnings outlook?

A: Rebecca, are you speaking about any state in particular? No, just in general. I think, as Tom mentioned earlier, A transaction between Eversource Energy and the Aquarium Water Authority is a condition for our transaction to move forward. So we are keenly watching what happens in Connecticut, and we understand that the current appeal period for the Pura order goes through mid-June. As far as the other states, if you look at the Massachusetts order that was issued earlier this year, It contained two conditions, one related to the sale of Hingham assets and one related to a stay-out period. As we said in the motion for reconsideration and clarification, the risk that those two matters pose to us is something that is unacceptable for us and would likely prevent us from moving forward with the Massachusetts operations as part of the transaction.

Q: Given the spike in oil prices since the conflict in Iran started, have you guys seen any changes in customer behavior, pace of conversion from oil, or even the tone of conversations with regulators around customer behavior related to these issues?

A: Hi, Rebecca. This is Tom Meissner. I think it's too soon to see any of those trends emerge because it's been really just a short period of time. But to your point, the cost of oil has increased dramatically for home heating. And realistically, we probably enjoy almost a two-to-one price advantage right now. So we do hope to take advantage of that. And we do believe that natural gas offers a much more affordable choice for customers to heat their homes.