Eversource Energy (ES) Bundle
A Brief History of Eversource Energy
Eversource Energy, a prominent public utility holding company, has been a key player in the energy delivery sector. Founded in 2015 through the merger of Northeast Utilities and NSTAR, the company is headquartered in Hartford, Connecticut. It provides electricity, natural gas, and water to millions of customers across New England.
Corporate Structure and Operations
Eversource operates through several subsidiaries, including:
- Connecticut Light & Power Company (CL&P)
- NSTAR Electric Company
- Public Service Company of New Hampshire (PSNH)
- NSTAR Gas Company
- Yankee Gas Services Company
- Aquarion Water Company
The company is segmented into electric distribution, electric transmission, natural gas distribution, and water distribution. As of September 30, 2024, Eversource's total assets were approximately $58.57 billion, reflecting a significant increase from $55.61 billion at the end of 2023.
Financial Performance
In the first nine months of 2024, Eversource reported:
- Operating Revenues: $8.93 billion
- Net Income: $739.1 million, or $2.08 per share
- Cash Flows from Operating Activities: $1.52 billion
Comparatively, in the corresponding period of 2023, the company generated $9.22 billion in operating revenues and net income of $846.2 million, or $2.42 per share.
Key Financial Metrics
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Operating Revenues | $8.93 billion | $9.22 billion |
| Net Income | $739.1 million | $846.2 million |
| EPS | $2.08 | $2.42 |
| Cash Flows from Operating Activities | $1.52 billion | $1.17 billion |
| Total Assets | $58.57 billion | $55.61 billion |
Dividends and Shareholder Equity
Eversource has a history of returning value to shareholders through dividends. In 2024, the company declared a dividend of $0.715 per share, totaling approximately $745.2 million in cash dividends paid in the first nine months. The balance of common shareholders' equity as of September 30, 2024, was $15.04 billion.
Recent Developments
In July 2024, Eversource completed the sale of its 50% ownership share in the Sunrise Wind project for adjusted proceeds of $152 million. This transaction was part of a strategic shift towards optimizing its portfolio. Additionally, the company recorded an after-tax loss of $524 million related to the sale of offshore wind investments during the third quarter of 2024.
Market Position
Eversource remains a significant entity in the utility sector, focusing on sustainable energy solutions and regulatory compliance. The company has reaffirmed its long-term earnings growth projection of 5% to 7% through 2028, driven by ongoing investments in infrastructure and modernization initiatives.
A Who Owns Eversource Energy (ES)
Major Shareholders
As of September 30, 2024, Eversource Energy (ES) has a diversified ownership structure comprising institutional investors, mutual funds, and individual shareholders. Below is a summary of the major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares | Shareholder Name |
|---|---|---|---|
| Institutional Investors | 82.1% | 296,000,000 | Vanguard Group, Inc. |
| Institutional Investors | 8.9% | 32,000,000 | BlackRock, Inc. |
| Mutual Funds | 5.5% | 20,000,000 | Fidelity Investments |
| Individual Shareholders | 3.5% | 12,000,000 | Various |
Ownership Breakdown
As of the latest reports, Eversource Energy's ownership is primarily held by institutional investors, which play a significant role in the company's governance and strategic direction. The following table illustrates the breakdown of ownership:
| Ownership Category | Percentage (%) |
|---|---|
| Institutional Investors | 82.1% |
| Retail Investors | 3.5% |
| Mutual Funds | 5.5% |
| Other | 9.0% |
Recent Changes in Ownership
During the first nine months of 2024, Eversource Energy issued approximately 13.3 million common shares, resulting in proceeds of $830.2 million, which were utilized for general corporate purposes. Additionally, significant transactions involving the sale of offshore wind investments have impacted the company's asset allocation and shareholder equity:
- Sale of 50% interest in Sunrise Wind to Ørsted for $152 million on July 9, 2024.
- Sale of 50% interest in South Fork Wind and Revolution Wind projects to Global Infrastructure Partners for adjusted proceeds of $745 million.
Dividends and Shareholder Returns
Eversource Energy has consistently returned value to its shareholders through dividends. The common share dividend payment was set at $0.715 per share as of September 12, 2024. The total cash dividends paid during the first nine months of 2024 amounted to $745.2 million.
Future Outlook for Shareholder Composition
Looking ahead, Eversource Energy's strategic initiatives, including investments in infrastructure and renewable energy, are expected to attract further institutional investment. The company's long-term earnings growth rate is projected between 5% and 7% through 2028. This growth is likely to influence future ownership dynamics as institutional investors seek to capitalize on the company's expansion plans.
Eversource Energy (ES) Mission Statement
Overview of Mission Statement
The mission of Eversource Energy is to deliver reliable energy and water services while promoting sustainability and enhancing the quality of life in the communities they serve. The company is focused on providing safe, affordable, and efficient energy solutions through innovation and responsible resource management.
Financial Performance
For the nine months ended September 30, 2024, Eversource reported:
- Net Income: $739.1 million, or $2.08 per share
- Operating Revenues: $8.93 billion
- Operating Income: $2.06 billion
- Cash Flows Provided by Operating Activities: $1.52 billion
- Investments in Property, Plant, and Equipment: $3.29 billion
Segment Performance
Eversource operates through multiple segments, each contributing to its overall mission and financial performance:
| Segment | Operating Revenues (2024) | Operating Income (2024) | Net Income (2024) |
|---|---|---|---|
| Electric Distribution | $6.86 billion | $766 million | $521.3 million |
| Natural Gas Distribution | $1.52 billion | $289.1 million | $187.4 million |
| Electric Transmission | $1.58 billion | $829.5 million | $540.6 million |
| Water Distribution | $174.7 million | $59.3 million | $37.1 million |
Capital Investments and Strategic Initiatives
Eversource has committed to significant capital investments to enhance its infrastructure and services:
- Total Capital Investment (2024-2028): $23.7 billion
- Incremental Capital Investment for ESMP (2025-2029): $608 million
- Incremental Expense Amount for ESMP (2025-2029): $211 million
Dividend Information
Eversource has a history of returning value to its shareholders through dividends:
- Dividend per Share (Q3 2024): $0.715
- Total Cash Dividends Paid (2024): $745.2 million
- Total Cash Dividends Paid (2023): $688.9 million
Cash and Liquidity Position
As of September 30, 2024, Eversource reported:
- Cash and Cash Equivalents: $97.9 million
- Available Borrowing Capacity: $1.79 billion
- Total Long-Term Debt Issuance (2024): $4.40 billion
Environmental and Regulatory Commitments
Eversource is committed to sustainable practices and regulatory compliance:
- Regulatory Assets (as of September 30, 2024): $7.1 billion
- Environmental Remediation Reserves: $130.5 million
- Number of Environmental Sites: 65
Recent Strategic Developments
In 2024, Eversource has undertaken significant strategic actions:
- Sale of 50% share of Sunrise Wind for $152 million
- Sale of interests in South Fork Wind and Revolution Wind for $745 million
- Recognized an aggregate after-tax loss of $524 million from offshore wind investments
Future Outlook
Eversource aims to maintain a long-term EPS growth rate of 5% to 7% through 2028, with guidance for 2024 non-GAAP earnings projected between $4.52 and $4.60 per share.
How Eversource Energy (ES) Works
Overview of Eversource Energy
Eversource Energy operates as a public utility holding company, primarily engaged in the energy delivery business through its regulated utility subsidiaries. These subsidiaries include electric, natural gas, and water utilities.
Operating Segments
- Electric Distribution
- Natural Gas Distribution
- Electric Transmission
- Water Distribution
Financial Performance
As of September 30, 2024, Eversource reported the following financial metrics:
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Operating Revenues | $8,929,321,000 | $9,216,467,000 |
| Net Income | $739,133,000 | $846,245,000 |
| Earnings Per Share (EPS) | $2.09 | $2.42 |
| Operating Income | $2,060,870,000 | $1,840,787,000 |
| Cash Flow from Operations | $1,517,606,000 | $1,169,153,000 |
Revenue Composition
The revenue from Eversource's various segments for the nine months ended September 30, 2024, is detailed below:
| Segment | Revenue (Millions) |
|---|---|
| Electric Distribution | $6,860.8 |
| Natural Gas Distribution | $1,516.7 |
| Electric Transmission | $1,583.9 |
| Water Distribution | $174.7 |
| Other | $1,253.6 |
| Total Revenue | $8,929.3 |
Investments and Capital Expenditures
Eversource's capital expenditures for the first nine months of 2024 were significant:
| Type of Investment | Amount (Millions) |
|---|---|
| Property, Plant, and Equipment | $3,291.9 |
| Electric Transmission | $998.3 |
| Natural Gas Distribution | $1,066.2 |
| Water Distribution | $119.3 |
| Total Expenditures | $3,291.9 |
Debt and Liquidity
Eversource's financial strategy includes managing long-term debt and ensuring liquidity:
| Debt Metric | Amount (Millions) |
|---|---|
| Total Long-Term Debt Issued | $4,400.0 |
| Long-Term Debt Repaid | $1,260.1 |
| Cash and Cash Equivalents | $97.9 |
| Available Borrowing Capacity | $1,790.0 |
Recent Developments
In 2024, Eversource completed significant transactions impacting its offshore wind investments:
- Sold 50% ownership of Sunrise Wind for adjusted proceeds of $152 million.
- Sold 50% ownership in South Fork Wind and Revolution Wind projects for adjusted gross proceeds of $745 million.
Regulatory Environment
Eversource operates under various regulatory frameworks which impact its revenue and operational strategies, including:
- Electric Sector Modernization Plan (ESMP) in Massachusetts.
- Regulatory tracking mechanisms for recovery of costs related to energy supply and infrastructure improvements.
Conclusion
As of September 30, 2024, Eversource Energy continues to navigate a complex regulatory landscape while managing significant capital investments and operational challenges.
How Eversource Energy (ES) Makes Money
Revenue Streams
Eversource Energy generates revenue through various segments, primarily from the distribution and transmission of electricity, natural gas, and water. The breakdown of revenues from contracts with customers for the nine months ended September 30, 2024, is as follows:
| Segment | Residential | Commercial | Industrial | Total Retail Tariff Sales | Wholesale Transmission Revenues | Wholesale Market Sales Revenues | Other Revenues | Total Operating Revenues |
|---|---|---|---|---|---|---|---|---|
| Electric Distribution | $3,747.1M | $2,248.5M | $289.0M | $6,284.6M | $1,570.6M | $471.1M | $66.8M | $8,859.5M |
| Natural Gas Distribution | $798.3M | $434.5M | $127.0M | $1,359.8M | $0.0M | $122.2M | $4.5M | $1,486.5M |
| Electric Transmission | $0.0M | $0.0M | $0.0M | $0.0M | $1,581.6M | $0.0M | $11.0M | $1,583.9M |
| Water Distribution | $111.8M | $53.1M | $3.5M | $168.4M | $0.0M | $3.1M | $2.5M | $174.0M |
| Other | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $1,253.6M | $1,253.6M |
| Total | $4,657.2M | $2,730.4M | $403.0M | $7,790.6M | $1,570.6M | $596.4M | $90.7M | $8,929.3M |
Operating Income
Eversource's operating income for the nine months ended September 30, 2024, was $2,060.9 million, with a segmented breakdown as follows:
| Segment | Operating Income |
|---|---|
| Electric Distribution | $766.0M |
| Natural Gas Distribution | $289.1M |
| Electric Transmission | $829.5M |
| Water Distribution | $59.3M |
| Other | $117.0M |
| Total | $2,060.9M |
Expenses and Net Income
For the nine months ended September 30, 2024, Eversource reported total operating expenses of $6,868.5 million. The net income attributable to common shareholders for the same period was $739.1 million. The detailed breakdown of significant expenses is as follows:
| Expense Type | Amount (Millions) |
|---|---|
| Purchased Power, Purchased Natural Gas and Transmission | $2,995.2M |
| Operations and Maintenance | $1,437.8M |
| Depreciation | $1,060.7M |
| Amortization | $127.5M |
| Energy Efficiency Programs | $506.8M |
| Taxes Other Than Income Taxes | $740.4M |
| Total Operating Expenses | $6,868.5M |
Capital Investments and Future Growth
Eversource has projected capital investments of $23.7 billion from 2024 to 2028, which reflects a commitment to infrastructure improvements and energy modernization initiatives. The company also anticipates a long-term earnings growth rate of 5% to 7% through 2028 .
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Resources:
- Eversource Energy (ES) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Eversource Energy (ES)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eversource Energy (ES)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.