Unitil Corp (UTL) 2024 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the second quarter 2024 Unitil Earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Christopher Goulding, Vice President of Finance and Regulatory Services. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 2024 年第二季 Unitil 收益電話會議。（操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給第一位發言人、財務和監管服務副總裁 Christopher Goulding。請繼續。

Good afternoon and thank you for joining us to discuss Unitil Corporation's second quarter 2024 financial results. Speaking on the call today will be Tom Meissner, Chairnan and Chief Executive Officer; and Dan Hurstak, Senior Vice President, Chief Financial Officer and Treasurer. Also with us today are Bob Hevert, President and Chief Administrative Officer; and Todd Diggins, Chief Accounting Officer and Controller.

下午好，感謝您與我們討論 Unitil Corporation 2024 年第二季的財務表現。董事長兼執行長湯姆·邁斯納 (Tom Meissner) 將在今天的電話會議上發言。丹‧赫斯塔克 (Dan Hurstak)，資深副總裁、財務長兼財務長。今天與我們在一起的還有總裁兼首席行政官 Bob Hevert；首席會計官兼財務總監 Todd Diggins。

We will discuss financial and other information on this call. As we mentioned in the press release announcing today's call, we have posted information, including a presentation to the Investors section of our website at unitil.com. We will refer to that information during this call.

我們將在這次電話會議上討論財務和其他資訊。正如我們在宣布今天電話會議的新聞稿中提到的，我們已經發布了信息，包括向我們網站unitil.com 的投資者部分進行的演示。我們將在本次通話中參考該資訊。

Moving to slide 2. The comments made today about future operating results or events are forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that can cause actual results to differ materially from those predicted.

轉到投影片 2。今天對未來營運績效或事件的評論屬於 1995 年《私人證券訴訟改革法案》安全港條款下的前瞻性陳述。前瞻性陳述本質上涉及風險和不確定性，可能導致實際結果與預測有重大差異。

Statements made on this call should be considered together with cautionary statements and other information contained in our most recent annual report on Form 10-K and other documents we have filed with or furnished to the Securities and Exchange Commission. Forward-looking statements speak only as of today, and we assume no obligation to update them.

本次電話會議中所做的聲明應與我們最新的 10-K 表格年度報告以及我們向美國證券交易委員會提交或提供的其他文件中包含的警告聲明和其他資訊一起考慮。前瞻性陳述僅代表今天的情況，我們不承擔更新這些陳述的義務。

The presentation contains non-GAAP financial measures. The accompanying supplemental information more fully describes these non-GAAP financial measures and includes a reconciliation to the nearest GAAP financial measures. The company believes these non-GAAP financial measures are useful in evaluating its performance.

此簡報包含非公認會計準則財務指標。隨附的補充資訊更全面地描述了這些非 GAAP 財務指標，並包括與最接近的 GAAP 財務指標的調整。該公司相信這些非公認會計準則財務指標有助於評估其績效。

With that, I will now turn the call over to Chairman and CEO, Tom Meissner.

現在，我將把電話轉給董事長兼執行長湯姆‧邁斯納 (Tom Meissner)。

Great. Thanks, Chris. Good afternoon, everyone and thank you for joining us.

偉大的。謝謝，克里斯。大家下午好，感謝您加入我們。

I'm going to begin on slide 3, where, today, we announced second-quarter net income of $4.3 million or $0.27 per share, representing an increase of $0.02 per share over the same period of 2023. Through the first half of the year, net income was $31.5 million or $1.96 per share, representing an increase of $0.20 per share over the same period in 2023. Our results for the quarter were in line with our expectations, and we are confident that our full-year earnings will be within our long-term guidance range.

我將從幻燈片 3 開始，今天我們宣布第二季度淨利潤為 430 萬美元，即每股 0.27 美元，比 2023 年同期增加了 0.02 美元。上半年淨利為3,150萬美元，即每股1.96美元，較2023年同期成長0.20美元。我們本季的業績符合我們的預期，我們有信心全年獲利將在我們的長期指導範圍內。

Looking beyond 2024, we reaffirm our long-term earnings growth of 5% to 7%, supported by rate base growth in the range of 6.5% to 8.5% and a dividend payout ratio between 55% and 65%. We continue to execute on our regulatory agenda, capital investment plan and cost control initiatives and believe that our consolidated GAAP return on equity of 9.8% over the last 12 months reflects these efforts.

展望2024年以後，我們重申長期獲利成長為5%至7%，這得益於6.5%至8.5%的利率基數成長和55%至65%的股息支付率。我們繼續執行我們的監管議程、資本投資計劃和成本控制舉措，並相信過去 12 個月我們 9.8% 的綜合 GAAP 股本回報率反映了這些努力。

Our regulatory agenda remains active, and we recently received an order in our Fitchburg electric and gas rate cases. We view that order as constructive, with many items approved as filed, including the company's performance-based rate plans. Dan will provide additional detail about these rate cases later on the call.

我們的監管議程仍然活躍，我們最近收到了有關菲奇堡電力和天然氣費率案件的命令。我們認為該命令具有建設性，許多項目已獲批准，包括公司基於績效的費率計劃。丹將在稍後的電話會議中提供有關這些費率案例的更多詳細資訊。

As I will outline in greater detail on the next slide, we reached an agreement with Hope Utilities to purchase Bangor Natural Gas Company, a fully regulated natural gas distribution utility. We expect the transaction to close by the end of the first quarter of 2025, subject to approval by the Maine Public Utilities Commission. We view Bangor as a natural complement to our existing operations and believe our shared commitment to affordability, safety and outstanding service will benefit Bangor's customers and communities.

正如我將在下一張幻燈片中更詳細地概述的那樣，我們與 Hope Utilities 達成協議，購買班戈天然氣公司，這是一家完全受監管的天然氣分銷公用事業公司。我們預計交易將於 2025 年第一季末完成，但須獲得緬因州公用事業委員會的批准。我們將班戈視為對我們現有業務的自然補充，並相信我們對經濟實惠、安全和卓越服務的共同承諾將使班戈的客戶和社區受益。

Moving now to slide 4. As I've talked about on prior calls, when we evaluate potential acquisitions, we look for opportunities that meet certain criteria. These include utility operations and constructive regulatory jurisdictions, proximity to our existing service areas, opportunities in colder climates where natural gas offers a cleaner and more affordable energy choice than other fuels, transactions that are accretive over the long term and opportunities that align with our strategic objectives. Bangor Natural Gas meets all of these criteria.

現在轉到投影片 4。正如我在之前的電話會議中談到的，當我們評估潛在收購時，我們會尋找符合特定標準的機會。其中包括公用事業運營和建設性監管管轄區、靠近我們現有的服務區域、寒冷氣候下的機會（天然氣比其他燃料提供更清潔、更實惠的能源選擇）、長期增值的交易以及符合我們策略的機會目標。班戈天然氣滿足所有這些標準。

Bangor Natural Gas is a fully regulated gas distribution company that owns and operates approximately 350 miles of pipeline throughout the Greater Bangor area of Maine. The Bangor distribution system is relatively new and is constructed of steel and plastic mains, with no cast iron or other leak-prone pipe.

班戈天然氣 (Bangor Natural Gas) 是一家受到全面監管的天然氣分銷公司，擁有並經營遍布緬因州大班戈地區約 350 英里的管道。班戈配電系統相對較新，由鋼和塑膠主管構成，沒有鑄鐵或其他容易洩漏的管道。

The company serves about 8,500 customers and has historically experienced strong customer growth, with an average growth rate of roughly 5% annually over the last five years. This strong customer growth is supported by the lowest natural gas rates in Maine. In fact, based on recent fuel prices, the cost to heat a home with natural gas in the Bangor area is less than half the cost of heating a home with fuel oil and about a third the cost of heating with propane.

該公司為約 8,500 名客戶提供服務，歷來經歷強勁的客戶成長，過去五年平均每年增長率約為 5%。這種強勁的客戶成長得益於緬因州最低的天然氣費率。事實上，根據最近的燃料價格，班戈地區使用天然氣暖氣的成本還不到使用燃油暖氣成本的一半，大約是使用丙烷暖氣成本的三分之一。

Bangor also has an interconnection agreement in place with the renewable natural gas facility capable of delivering meaningful levels of pipeline quality natural gas, which we believe can support Maine's climate policies. The purchase price of $70.9 million, subject to customary adjustments for working capital and transaction expenses. The enterprise value represents a multiple of approximately 1.2 times estimated rate base as of year-end 2023.

班戈還與再生天然氣設施簽訂了互連協議，能夠提供有意義的管道品質天然氣，我們相信這可以支持緬因州的氣候政策。收購價格為 7,090 萬美元，根據營運資金和交易費用的慣例調整。截至 2023 年底，企業價值約為估計費率基數的 1.2 倍。

S&P views the transaction as credit neutral, even if it is financed primarily with debt, although we expect to finance this transaction with a balanced mix of equity and debt similar to our other regulated utilities. We look forward to working with other interested parties during the pendency of the approval proceeding before the Maine Public Utilities Commission.

標準普爾認為該交易是信用中立的，即使它主要透過債務融資，儘管我們希望像我們其他受監管的公用事業公司那樣透過股權和債務的平衡組合為該交易提供融資。我們期待在緬因州公用事業委員會的批准程序懸而未決期間與其他有興趣的各方合作。

Turning now to slide 5. Our capital investment plan through 2028 totals approximately $910 million, with opportunities for additional investments. As one example, we previously discussed the high penetration of fuel oil in propane in Maine and the financial and environmental benefits that natural gas can bring to residential customers heating with those fuels. We see the Bangor transactions providing additional opportunities for conversions and expansion.

現在轉到投影片 5。到 2028 年，我們的資本投資計畫總額約為 9.1 億美元，並有機會進行額外投資。作為一個例子，我們之前討論了緬因州丙烷中燃油的高滲透率，以及天然氣可以為使用這些燃料供暖的住宅客戶帶來的財務和環境效益。我們看到班戈交易為轉換和擴張提供了額外的機會。

We also believe that further electric system modernization investments will be required to satisfy the increasing demand for electrification and customer growth and also to enhance grid resilience and to enable smart technologies will provide customers with information to more effectively control their energy use and costs. These requirements may provide further upside to our capital plan.

我們還認為，需要進一步進行電力系統現代化投資，以滿足日益增長的電氣化需求和客戶增長，並增強電網彈性，並使智能技術能夠為客戶提供信息，以更有效地控制其能源使用和成本。這些要求可能會為我們的資本計劃提供進一步的好處。

Lastly, I'd like to provide an update on our utility scale solar project here in New Hampshire. Site work is on schedule and is expected to be completed in the third quarter of 2024, with facility construction beginning shortly thereafter. We expect the project to be placed in service by the end of the second quarter of 2025.

最後，我想介紹一下我們在新罕布夏州的公用事業規模太陽能專案的最新情況。現場工作按計劃進行，預計將於 2024 年第三季完成，隨後不久將開始設施建設。我們預計該專案將於 2025 年第二季末投入使用。

With that, I will now pass it over to Dan, who will provide greater detail on the second quarter results. Dan?

現在，我將把它交給丹，他將提供有關第二季度業績的更多詳細資訊。擔？

Thank you, Tom. Good afternoon, everyone. I'll begin on slide 6. As Tom mentioned, today, we announced second quarter net income of $4.3 million or $0.27 per share, an increase of $0.02 per share compared to the same period in 2023. For the first six months of the year, net income was $31.5 million, an increase of $3.2 million or $0.20 per share compared to the corresponding period in 2023. Earnings growth reflects higher adjusted electric and gas margin, partially offset by higher operating expenses.

謝謝你，湯姆。大家下午好。我將從幻燈片 6 開始。正如 Tom 所提到的，今天，我們宣布第二季淨利為 430 萬美元，即每股 0.27 美元，與 2023 年同期相比每股增加 0.02 美元。今年前六個月，淨利潤為 3,150 萬美元，比 2023 年同期增加 320 萬美元，即每股增加 0.20 美元。獲利成長反映出調整後的電力和天然氣利潤率較高，但部分被較高的營運費用所抵銷。

Our results for the first half of 2024 are consistent with the quarterly earnings per share distribution discussed in the past and provided in the appendix of this presentation. We expect the results for the remainder of 2024 will be largely consistent with this quarterly distribution.

我們 2024 年上半年的業績與過去討論並在本簡報附錄中提供的季度每股收益分配一致。我們預計 2024 年剩餘時間的結果將與本季分佈基本一致。

Turning to slide 7. I will discuss our electric and gas adjusted gross margins. I will start with our electric operations. Electric adjusted gross margin was $52 million for the six months ended June 30, 2024, an increase of $1.1 million compared to the same period in 2023. This increase in electric adjusted gross margin reflects higher distribution rates and customer growth.

轉到投影片 7。我將討論我們的電力和天然氣調整毛利率。我將從我們的電力運營開始。截至2024年6月30日的六個月，電力調整後毛利率為5,200萬美元，較2023年同期增加110萬美元。電力調整毛利率的成長反映了更高的分銷率和客戶成長。

The company added approximately 750 new electric customers compared to the same period in 2023. As a reminder, the company's electric distribution revenues are substantially decoupled, which eliminates the dependency of distribution revenue on the volume of electricity sales.

與 2023 年同期相比，該公司新增約 750 個電力客戶。需要提醒的是，該公司的配電收入基本上是脫鉤，這消除了配電收入對售電量的依賴。

Moving to gas operations. 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 increase in gas adjusted gross margin reflects higher distribution rates and customer growth. The company added approximately 1,100 new gas customers compared to the same period in 2023. Approximately 60% of the company's gas customers are under decoupled rates.

轉向天然氣業務。截至 2024 年 6 月 30 日的前六個月，天然氣調整後毛利率為 9,230 萬美元，與 2023 年同期相比增加了 810 萬美元，約 10%。天然氣調整後毛利率的成長反映了更高的分銷率和客戶成長。與 2023 年同期相比，該公司新增約 1,100 個天然氣客戶。該公司約 60% 的天然氣客戶採用脫鉤費率。

Moving to slide 8. We provide an earnings bridge comparing year-to-date 2024 results to 2023. As I just discussed, adjusted gross margin for the first six months of the year increased by $9.2 million, primarily driven by higher distribution rates and customer growth. Operation and maintenance expenses increased $0.4 million, primarily reflecting higher labor costs. This nominal increase of approximately 1.1% is well below broader inflation of about 3% over the same period.

轉到投影片 8。我們提供了一個收益橋樑，將 2024 年至今的表現與 2023 年進行比較。正如我剛才所討論的，今年前六個月的調整後毛利率增加了 920 萬美元，這主要是由於更高的分銷率和客戶成長所致。營運和維護費用增加了 40 萬美元，主要反映了勞動力成本的上升。名目成長率約為 1.1%，遠低於同期約 3% 的整體通膨率。

Depreciation and amortization increased $2.8 million, reflecting higher levels of utility plant in service and higher amortization of storm costs. Taxes other than income taxes increased $0.7 million, reflecting higher local property taxes on higher utility plant in service as well as higher payroll taxes.

折舊和攤提增加了 280 萬美元，反映了公用設施投入使用水準的提高和風暴成本攤提的提高。除所得稅外的其他稅收增加了 70 萬美元，反映出對較高的營運公用事業工廠徵收的地方財產稅以及較高的工資稅。

Interest expense increased $0.6 million, reflecting higher interest expense on short-term borrowings and higher levels of long-term debt, partially offset by higher interest income on regulatory assets. Other expense increased by $0.5 million, largely due to higher retirement benefit costs. And lastly, income taxes increased $1 million, reflecting higher pretax earnings.

利息支出增加了 60 萬美元，反映出短期借款利息支出增加和長期債務水準較高，但部分被監管資產利息收入增加所抵銷。其他費用增加了 50 萬美元，主要是因為退休福利成本增加。最後，所得稅增加了 100 萬美元，反映出稅前收入增加。

Turning to slide 9. As Tom noted, we recently received the rate case order for our electric and gas divisions in Massachusetts, and new base distribution rates for both divisions took effect on July 1. We believe the order, which approved many of the company's proposals, is constructive for all stakeholders.

轉到投影片 9。正如 Tom 指出的，我們最近收到了馬薩諸塞州電力和天然氣部門的費率案例訂單，這兩個部門的新基本分配費率於 7 月 1 日生效。我們相信，該命令批准了公司的許多提案，對所有利益相關者來說都是建設性的。

With our continuing focus on operating efficiency, the order should provide Fitchburg with the opportunity to earn its authorized return on equity over the dive-year term. The order approved a return on equity of 9.4% for both the electric and gas divisions and the company's actual capital structure, which includes 52.26% common equity. Revenue decoupling remains in place for both divisions, with the gas division moving from a revenue per customer model to a revenue target model.

由於我們持續關注營運效率，該訂單應為惠譽堡提供在潛水年度期間賺取其授權股本回報率的機會。該命令批准電力和燃氣部門以及公司實際資本結構的股本回報率為 9.4%，其中包括 52.26% 的普通股。兩個部門的收入脫鉤仍然存在，天然氣部門從按客戶收入模型轉向收入目標模型。

The rate case order also approved five-year performance-based rate plans, which I will discuss in greater detail on the next slide. The annual distribution rate award for the electric division was $4.7 million. This award includes revenue transfers between capital tracker mechanisms and base rates, which totaled $2.5 million. Net of these revenue transfers, the annualized revenue increase is approximately $2.2 million.

費率案例命令還批准了基於績效的五年費率計劃，我將在下一張投影片中更詳細地討論該計劃。電氣部門的年度分配率獎勵為 470 萬美元。該獎項包括資本追蹤機制和基本費率之間的收入轉移，總計 250 萬美元。扣除這些收入轉移後，年化收入成長約為 220 萬美元。

The annual distribution rate award for the gas division was $10.1 million. Similar to the electric division, this amount includes the transfer of revenues from capital tracker mechanisms to base distribution rates. Net of the $4.9 million transfer for the gas division, the net annualized revenue increase is $5.2 million.

天然氣部門的年度分配率獎勵為 1,010 萬美元。與電力部門類似，這一金額包括從資本追蹤機製到基本分配率的收入轉移。扣除天然氣部門 490 萬美元的轉移後，年化收入淨成長為 520 萬美元。

The order also approved higher depreciation rates, which will result in an annual depreciation expense increase of about $2.6 million. This increase in gas depreciation expense will not affect earnings as it is offset with higher revenues. Our regulatory agenda remains busy, and we expect to file a Granite State Gas Transmission rate case with FERC before the end of the year.

該命令還批准了更高的折舊率，這將導致每年折舊費用增加約 260 萬美元。天然氣折舊費用的增加不會影響收益，因為它會被更高的收入所抵銷。我們的監管議程仍然繁忙，我們預計在今年年底前向 FERC 提交 Granite State Gas Transmission 費率案件。

Moving now to slide 10. I would like to provide an overview of the performance-based rate plan approved for a five-year term for Fitchburg. We believe the performance-based rate plan support the clean energy transition, while reducing regulatory burden and promoting efficiencies in cost control. Annual rate changes will take effect each July 1 from 2025 through 2028. These annual rate changes include inflation increases tied to the GDP price index, with a 0% floor and a 5% cap.

現在轉到投影片 10。我想概述一下菲奇堡批准的五年任期基於績效的費率計劃。我們相信基於績效的費率計劃支持清潔能源轉型，同時減輕監管負擔並提高成本控制效率。2025 年至 2028 年期間，每年的利率變動將於每年 7 月 1 日生效。這些年度利率變化包括與 GDP 物價指數掛鉤的通膨增幅，下限為 0%，上限為 5%。

If inflation increases exceed 2%, a 25-basis-point consumer dividend will be applied.

如果通貨膨脹率超過2%，則將適用25個基點的消費者紅利。

Exogenous cost adjustments can be included for certain events if the effect is outside of our control and surpasses $110,000 for the electric division and $60,000 for the gas division. If the return on equity exceeds 100 basis points above the authorized return, an earnings sharing mechanism would be triggered, and 75% of excess earnings above 10.4% would be shared with customers.

如果某些事件的影響超出我們的控制範圍，且電力部門超過 110,000 美元，燃氣部門超過 60,000 美元，則可以包括外生成本調整。如果股本回報率超過授權回報100個基點，就會觸發收益分享機制，超過10.4%的超額收益將與客戶分享75%。

With regard to the electric division, a K-Bar mechanism that recovers property taxes and the return on and of capital investment is part of the annual base rate increase and effectively replaces the previous electric capital cost recovery mechanism.

在電力部門，回收財產稅和資本投資回報的K-Bar機制是年度基本稅率成長的一部分，有效取代了先前的電力資本成本回收機制。

The K-Bar mechanism contributes to the predictability of electric revenues, while mitigating the regulatory burden to all parties. The Grid Modernization capital tracker remains in place outside of the electric PBR structure. Because the gas infrastructure replacement tracker remains in place, there is no K-Bar mechanism for the company's gas operations.

K-Bar機制有助於提高電力收入的可預測性，同時減輕各方的監管負擔。電網現代化資本追蹤器仍然存在於電力 PBR 結構之外。由於天然氣基礎設施更換追蹤器仍然存在，因此該公司的天然氣營運沒有 K-Bar 機制。

Turning to slide 11. We consider our balance sheet as a strategic asset and continue to expect operating cash flows less dividends to fund the vast majority of our capital investment plan, with the remaining financing needs met through a combination of debt and equity. We continue to maintain investment-grade credit ratings through our focus on responsibly managing the balance sheet and generating strong cash flows.

轉到投影片 11。我們將資產負債表視為策略資產，並繼續預期營運現金流減去股利即可為我們的絕大多數資本投資計畫提供資金，其餘融資需求將透過債務和股權的組合來滿足。我們透過專注於負責任地管理資產負債表和產生強勁的現金流，繼續維持投資等級信用評級。

Our financing plan supports our investment-grade credit ratings, and in 2023, we were 500 basis points above our FFO to debt downgrade threshold. Consistent with past practice, we expect to recapitalize portions of our short-term debt with long-term debt to reduce interest rate volatility and enhance our liquidity profile by reducing the outstanding balance on our revolving credit facility. Maintaining our strong balance sheet and our investment-grade credit ratings remain a top priority.

我們的融資計畫支持我們的投資等級信用評級，到 2023 年，我們的 FFO 債務降級門檻高出 500 個基點。與過去的做法一致，我們預計以長期債務對部分短期債務進行資本重組，以減少利率波動，並透過減少循環信貸額度的未償餘額來增強我們的流動性狀況。保持強勁的資產負債表和投資等級信用評級仍然是首要任務。

I'll now turn the call back over to Tom.

我現在將把電話轉回給湯姆。

Thanks, Dan. Wrapping up on slide 12. We've enjoyed a strong first half of the year, and we're currently earning our authorized returns on a consolidated basis. Recent regulatory outcomes remain constructive, and our capital investment plan remains on track. Our credit metrics continue to compare favorably to our peers, ensuring access to capital to support our growth. I'm excited about the future and look forward to providing additional details about the Bangor acquisition on future calls. With that, I'll pass it back to Chris.

謝謝，丹。投影片 12 結束。今年上半年我們表現強勁，目前我們正在綜合基礎上賺取授權回報。最近的監管結果仍然具有建設性，我們的資本投資計劃仍在按計劃進行。我們的信用指標持續優於同行，確保獲得資金來支持我們的成長。我對未來感到興奮，並期待在未來的電話會議上提供有關班戈收購的更多詳細資訊。這樣，我會將其傳回給克里斯。

Thanks Tom. That wraps up the prepared materials for this call. Thank you for attending. I'll now turn the call over to the operator, who will coordinate questions.

謝謝湯姆。本次電話會議所準備的資料到此結束。感謝您的出席。我現在將把電話轉給接線員，接線員將協調問題。

(Operator Instructions)

（操作員說明）

Anne Alonzo, Alonzo Advisory LLC. Ken Sheldon, Bank of America. You may go ahead, Ken. The floor is yours.

安妮·阿隆佐，阿隆佐諮詢有限責任公司。肯·謝爾頓，美國銀行。你可以繼續，肯。地板是你的。

I'm showing no further questions. So at this time, we would now like to close out the meeting. Thank you for your participation in today's meeting.

我沒有再提出任何問題。所以此時，我們想結束會議。感謝您參加今天的會議。