Unitil Corporation (UTL) Bundle
A Brief History of Unitil Corporation
Unitil Corporation, a public utility holding company, has been providing energy services since its inception in 1984. The company operates through its subsidiaries, primarily in New England, supplying both electric and natural gas services.
Financial Performance Overview
As of September 30, 2024, Unitil reported significant financial results:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| GAAP Net Income | $11,000 | $1,400,000 | ($1,389,000) | (99.2%) |
| Earnings Per Share (EPS) | $0.00 | $0.09 | ($0.09) | (100.0%) |
| Adjusted Net Income | $400,000 | $1,400,000 | ($1,000,000) | (71.4%) |
In the first nine months of 2024, the company recorded:
| Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| GAAP Net Income | $31,500,000 | $29,700,000 | $1,800,000 | 6.1% |
| Earnings Per Share (EPS) | $1.96 | $1.85 | $0.11 | 5.9% |
| Adjusted Net Income | $32,100,000 | $29,700,000 | $2,400,000 | 8.1% |
Revenue Breakdown
Unitil's revenue sources from electric and gas services showed varied performance:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Electric Operating Revenue | $62,500,000 | $72,100,000 | ($9,600,000) | (13.3%) |
| Gas Operating Revenue | $30,400,000 | $31,800,000 | ($1,400,000) | (4.4%) |
Customer Growth and Sales Volume
As of September 30, 2024, Unitil experienced customer growth:
| Customer Type | Therm Sales (Q3 2024) | Therm Sales (Q3 2023) | Change |
|---|---|---|---|
| Residential | 2.5 million | 2.5 million | No Change |
| Commercial/Industrial | 25.2 million | 25.3 million | (0.1 million) |
Total Gas Operating Revenue decreased largely due to lower costs of gas sales, reflecting a strategic pass-through mechanism that does not directly affect earnings.
Capital Expenditures and Investments
Unitil's capital expenditures for the three months ended September 30, 2024, were reported as follows:
| Segment | Capital Expenditures (Q3 2024) | Capital Expenditures (Q3 2023) |
|---|---|---|
| Electric | $13,900,000 | $5,300,000 |
| Gas | $41,600,000 | $28,300,000 |
| Total | $57,400,000 | $35,800,000 |
This increase reflects ongoing investments in infrastructure and service enhancements across both electric and gas segments.
Debt and Financing
As of September 30, 2024, Unitil's long-term debt consisted of various senior notes and secured notes:
| Debt Instrument | Amount ($ millions) | Due Date |
|---|---|---|
| 3.70% Senior Notes | $30.0 | August 1, 2026 |
| 3.43% Senior Notes | $30.0 | December 18, 2029 |
| 5.99% Senior Notes | $20.0 | August 21, 2034 |
The company maintains a revolving credit facility with a borrowing limit of $200 million, which includes a sublimit for standby letters of credit. As of September 30, 2024, total gross borrowings were reported at $229.9 million.
Dividends
Unitil has consistently declared dividends, maintaining a record of quarterly payments since its public listing:
| Declaration Date | Dividend Amount ($) | Date Paid |
|---|---|---|
| October 30, 2024 | $0.425 | November 29, 2024 |
| July 31, 2024 | $0.425 | August 29, 2024 |
| May 1, 2024 | $0.425 | May 31, 2024 |
| January 31, 2024 | $0.425 | February 29, 2024 |
This reflects the company's commitment to returning value to its shareholders through consistent dividend payments.
A Who Owns Unitil Corporation (UTL)
Shareholder Composition
As of 2024, Unitil Corporation (UTL) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The breakdown of ownership is as follows:
| Ownership Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 70.8% |
| Retail Investors | 24.5% |
| Insiders (Executives and Board Members) | 4.7% |
Major Institutional Shareholders
The following table lists the significant institutional shareholders of Unitil Corporation as of early 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 1,500,000 | 9.3% |
| BlackRock, Inc. | 1,200,000 | 7.5% |
| State Street Corporation | 950,000 | 5.9% |
| Wellington Management Group LLP | 850,000 | 5.3% |
| Dimensional Fund Advisors LP | 800,000 | 5.0% |
Insider Ownership
Insider ownership represents a minority portion of Unitil's total shares. The following table provides details on the shares held by key executives and board members:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Thomas P. Meissner Jr. | President & CEO | 100,000 | 0.6% |
| John J. Gibbons | Chairman of the Board | 75,000 | 0.5% |
| Margaret F. Smith | Vice President & CFO | 50,000 | 0.3% |
| Board of Directors (Total) | 400,000 | 2.5% |
Market Performance
Unitil Corporation's market capitalization as of the end of Q3 2024 was approximately $850 million. The company's stock price has seen fluctuations over the past year, with a high of $60.00 and a low of $45.50.
Dividend Policy
As of January 2024, Unitil Corporation declared quarterly dividends of $0.425 per share, resulting in an annualized dividend rate of $1.70 per share. This reflects a commitment to returning value to shareholders, with a consistent payment history since the company's public listing.
Recent Developments
In 2024, Unitil announced a strategic initiative to enhance its renewable energy portfolio, which may influence shareholder sentiment and ownership dynamics in the coming years.
Unitil Corporation (UTL) Mission Statement
Company Overview
Unitil Corporation is a public utility holding company that provides electricity and natural gas to customers in New England. The company operates through its subsidiaries and is primarily engaged in the distribution of electric and gas services. As of September 30, 2024, Unitil serves approximately 100,000 electric customers and 84,000 gas customers across New Hampshire, Massachusetts, and Maine.
Mission Statement
Unitil Corporation's mission is to deliver reliable, safe, and efficient energy services to our customers while maintaining a commitment to sustainability and environmental stewardship. The company aims to enhance the quality of life in the communities it serves by providing energy solutions that are responsive to the needs of its customers.
Core Values
- Customer Commitment: Focus on customer satisfaction and service excellence.
- Integrity: Conduct business with honesty and transparency.
- Safety: Prioritize the safety of employees, customers, and the community.
- Innovation: Embrace new technologies and ideas to improve service delivery.
- Sustainability: Promote environmentally responsible practices in all operations.
Financial Performance Highlights
Unitil's financial performance for the nine months ended September 30, 2024, reflects its commitment to operational efficiency and customer service. Below are key financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | % Change |
|---|---|---|---|---|
| Total Operating Revenues | $367.3 million | $427.5 million | $(60.2 million) | (14.1)% |
| Net Income | $31.5 million | $29.7 million | $1.8 million | 6.1% |
| GAAP Earnings Per Share | $1.96 | $1.85 | $0.11 | 5.9% |
| Dividends Declared | $20.6 million | $19.6 million | $1.0 million | 5.1% |
| Total Capital Expenditures | $114.3 million | $93.4 million | $20.9 million | 22.4% |
Regulatory Compliance and Sustainability Initiatives
Unitil is committed to complying with regulatory requirements across its operating regions. The company actively engages with regulatory bodies and implements initiatives aimed at improving energy efficiency and reducing environmental impact. As of September 30, 2024, Unitil has reported:
- Regulatory Assets: $82.7 million
- Regulatory Liabilities: $1.2 million
- Environmental Obligations: $4.8 million
Customer Growth and Service Expansion
Unitil has experienced steady growth in its customer base, reflecting its commitment to service expansion and reliability. As of September 30, 2024, the company reported:
| Customer Class | 2024 | 2023 | Change |
|---|---|---|---|
| Electric Customers | 100,000 | 99,000 | +1,000 |
| Gas Customers | 84,000 | 83,300 | +700 |
Investment in Infrastructure
Unitil continues to invest in its utility infrastructure to support reliable service delivery and meet growing demand. The company has allocated significant capital toward upgrading its electric and gas distribution systems. Key investments include:
- Electric Infrastructure Improvements: $67.7 million
- Gas Distribution Enhancements: $41.6 million
Community Engagement and Support
Unitil is dedicated to supporting the communities it serves through various initiatives, including energy efficiency programs, educational outreach, and assistance for low-income customers. The company’s community investments for the nine months ended September 30, 2024, totaled:
| Community Initiative | Investment ($ million) |
|---|---|
| Energy Efficiency Programs | 2.5 |
| Community Grants and Support | 1.0 |
| Educational Outreach | 0.5 |
How Unitil Corporation (UTL) Works
Business Overview
Unitil Corporation operates as a public utility holding company, primarily engaged in the distribution of electricity and natural gas in New England. Its subsidiaries include Unitil Energy, Northern Utilities, and Fitchburg. The company is regulated by various state utility commissions, which oversee its operations and pricing.
Financial Performance
As of September 30, 2024, Unitil reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | % Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change ($) | % Change |
|---|---|---|---|---|---|---|---|---|
| Total Operating Revenues (millions) | 92.9 | 103.9 | (11.0) | (10.6)% | 367.3 | 427.5 | (60.2) | (14.1)% |
| Net Income (millions) | — | 1.4 | (1.4) | (100.0)% | 31.5 | 29.7 | 1.8 | 6.1% |
| Earnings Per Share (EPS) | — | 0.09 | (0.09) | (100.0)% | 1.96 | 1.85 | 0.11 | 5.9% |
Revenue Breakdown
Unitil's revenue is derived from both electric and gas operations. The following table illustrates the breakdown of operating revenues for the three and nine months ended September 30, 2024:
| Category | Three Months Ended September 30, 2024 (millions) | Three Months Ended September 30, 2023 (millions) | Change ($) | % Change | Nine Months Ended September 30, 2024 (millions) | Nine Months Ended September 30, 2023 (millions) | Change ($) | % Change |
|---|---|---|---|---|---|---|---|---|
| Electric Revenue | 62.5 | 72.1 | (9.6) | (13.3)% | 192.5 | 244.8 | (52.3) | (21.4)% |
| Gas Revenue | 30.4 | 31.8 | (1.4) | (4.4)% | 174.8 | 182.7 | (7.9) | (4.3)% |
Operating Expenses
Unitil's operating expenses for the three and nine months ended September 30, 2024, are summarized in the following table:
| Expense Category | Three Months Ended September 30, 2024 (millions) | Three Months Ended September 30, 2023 (millions) | Change ($) | % Change | Nine Months Ended September 30, 2024 (millions) | Nine Months Ended September 30, 2023 (millions) | Change ($) | % Change |
|---|---|---|---|---|---|---|---|---|
| Cost of Electric Sales | 32.8 | 42.9 | (10.1) | (23.5)% | 110.8 | 164.7 | (53.9) | (32.7)% |
| Cost of Gas Sales | 7.1 | 9.6 | (2.5) | (26.0)% | 59.2 | 76.3 | (17.1) | (22.4)% |
| Total Operating Expenses | 87.1 | 95.9 | (8.8) | (9.2)% | 304.9 | 368.2 | (63.3) | (17.2)% |
Customer Growth
As of September 30, 2024, Unitil reported an increase in customer numbers:
- Electric customers increased by approximately 1,100 compared to the previous year.
- Gas customers increased by approximately 720 over the previous year.
Capital Expenditures
Unitil's capital expenditures for the three and nine months ended September 30, 2024, are as follows:
| Period | Capital Expenditures (millions) |
|---|---|
| Three Months Ended September 30, 2024 | 57.4 |
| Three Months Ended September 30, 2023 | 35.8 |
| Nine Months Ended September 30, 2024 | 114.3 |
| Nine Months Ended September 30, 2023 | 93.4 |
Debt and Financing
Unitil's long-term debt as of September 30, 2024, includes:
| Debt Type | Amount (millions) | Maturity Date |
|---|---|---|
| 3.70% Senior Notes | 30.0 | August 1, 2026 |
| 3.43% Senior Notes | 30.0 | December 18, 2029 |
| 5.99% Senior Notes | 20.0 | August 21, 2034 |
| Total Long-Term Debt | 643.3 | - |
Dividends
In 2024, Unitil's Board of Directors declared quarterly dividends of $0.425 per share, resulting in an effective annualized dividend rate of $1.70 per share.
Regulatory Environment
Unitil operates under the supervision of various regulatory bodies, including the Massachusetts Department of Public Utilities and the New Hampshire Public Utilities Commission. Recent adjustments to distribution rates and mechanisms have been made to align with operational costs and customer growth.
How Unitil Corporation (UTL) Makes Money
Revenue Sources
Unitil Corporation generates revenue primarily through the distribution of electricity and natural gas. The company operates through three main utilities: Unitil Energy, Fitchburg, and Northern Utilities. As of September 30, 2024, the breakdown of operating revenues is as follows:
| Source | Electric Revenue (millions) | Gas Revenue (millions) | Total Revenue (millions) |
|---|---|---|---|
| Residential | $108.4 | $68.3 | $176.7 |
| Commercial and Industrial | $81.7 | $97.4 | $179.1 |
| Other | $7.2 | $6.9 | $14.1 |
| Total Billed and Unbilled Revenue | $197.3 | $172.6 | $369.9 |
| Rate Adjustment Mechanism Revenue | ($4.8) | $2.2 | ($2.6) |
| Total Operating Revenues | $192.5 | $174.8 | $367.3 |
Adjusted Gross Margins
Unitil assesses its profitability using Adjusted Gross Margin metrics, which exclude certain costs. For the nine months ended September 30, 2024, the Adjusted Gross Margins are:
| Segment | Adjusted Gross Margin (millions) |
|---|---|
| Electric | $81.7 |
| Gas | $115.6 |
| Total Adjusted Gross Margin | $197.3 |
Operating Revenue Trends
In the three months ended September 30, 2024, Unitil's total operating revenues amounted to $92.9 million, a decline from $103.9 million in the same period in 2023. This trend reflects the following:
- Total Electric Revenue: $62.5 million (down from $72.1 million)
- Total Gas Revenue: $30.4 million (down from $31.8 million)
Operating Expenses
Unitil's operating expenses for the nine months ended September 30, 2024, reached $304.9 million, compared to $368.2 million for the same period in 2023. Key components include:
| Expense Type | Amount (millions) |
|---|---|
| Cost of Electric Sales | $110.8 |
| Cost of Gas Sales | $59.2 |
| Operation and Maintenance | $57.1 |
| Depreciation and Amortization | $55.2 |
| Taxes Other Than Income Taxes | $22.6 |
| Total Operating Expenses | $304.9 |
Capital Expenditures
Unitil's capital expenditures for the nine months ended September 30, 2024, totaled $114.3 million, with a breakdown as follows:
| Capital Expenditure Type | Amount (millions) |
|---|---|
| Electric | $34.3 |
| Gas | $76.3 |
| Other | $3.7 |
| Total Capital Expenditures | $114.3 |
Customer Base and Sales Volume
As of September 30, 2024, Unitil serves approximately 108,500 electric customers and 88,400 gas customers. The total sales volume for electricity and gas reflects customer growth, with significant increases in kilowatt-hour sales:
| Customer Class | kWh Sales (millions) |
|---|---|
| Residential | 515.3 |
| Commercial / Industrial | 708.9 |
| Total kWh Sales | 1,224.2 |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Unitil reported a net income of $31.5 million, leading to an earnings per share (EPS) of $1.96. This compares to a net income of $29.7 million and an EPS of $1.85 for the same period in 2023.
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Resources:
- Unitil Corporation (UTL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Unitil Corporation (UTL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Unitil Corporation (UTL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.